Social Housing Could Be Saved From Extra FIT Cut

The government is consulting on plans to protect social housing solar photovoltaic panel schemes from an especially heavy cut to solar subsidies as part of an overhaul of the feed-in tariff system. In a consultation paper, climate change minister Greg Barker, proposes that social housing, community projects and distributed energy schemes should be exempt from an additional 20 per cent cut to the FIT rate for large scale solar schemes. The move will be welcomed by those that have lobbied for equal FITs rates for the social housing sector so that landlords can tackle fuel poverty - however, it will be largely eclipsed by the solar industry’s angry reaction to the bulk of the proposals that have seen an overhaul of the FIT. Under the new proposals, the government plans to introduce a mechanism for more regular degression of the FIT so that it is more closely linked to the falling costs of PV. This will mean more frequent cuts to the FIT leading to accusations from the sector that the government is inflicting further damage on the solar industry. The first reduction will see a 25 per cent fall in the FIT from the 1 April level of 21p on 1 July. The consultation closes on 3 April 2012, you can download a copy of the consultation paper from the DECC website.