Member News
By Alex Cunningham MP - 29th March 2011
The solar industry has been knocked off course by a government that has "destroyed confidence" in its renewable energy policy, says Alex Cunningham MP.
The renewable industry has been taken aback by the government's decision to slash Feed-in Tariffs (FiTs) for medium to large scale Solar Photovoltaic (PV) projects.
FiTs were introduced in April 2010 and pay people for producing solar energy. Since they were introduced the industry has seen a 230 per cent growth in solar installation jobs.
But the government's fast-tracked review into Feed-in Tariffs has proposed significantly reduced tariffs for schemes over 50kW in size meaning that investors in the technology are being scared away. It also means many medium sized developments, such as those considered by hospitals, schools and community groups will no longer be viable.
This decision has been met with shock by the industry who cannot understand why the sector has been undermined in this way. The Renewable Energy Association says the industry has been "strangled at birth" whilst The Solar Trade Association calls the government's decision "a total disaster".
Solar energy is hugely popular with the general public and was on track to create 17,000 new jobs by the end of 2011. In addition, solar energy will help us reach our renewable energy targets, which aim to have 15 per cent of our energy come from renewable sources by 2015.
I cannot make sense of this decision which is why I will put the concerns of the industry and environmental groups to the government in a 30 minute Westminster Hall Debate on this topic on Tuesday.
Energy policy should not be dictated by the Treasury but I fear that is what is happening here. As a result, the solar industry has been knocked off course by a government that has destroyed confidence in its renewable energy policy.
Alex Cunninghamwas elected Labour MP for Stockton North in 2010.
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