Rudd to take second swing at solar subsidies in FiT review: reports

Energy secretary Amber Rudd is set to deliver the second blow to the solar sector in as many months through new plans to slash solar feed-in-tariff (FiT) rates by half, according to reports.

Within the next two weeks the energy secretary is expected to announce the results of a consultation on feed-in-tariff support which began in July at the same time that Rudd acted to cut solar support through the Renewables Obligation (RO) for larger solar projects. 

The Sunday Times cites “industry sources” as saying that changes to the FiT regime, which supports small-scale rooftop and solar farms, could see the current 12.9 pence per kilowatt hour rate slashed by up to half.

The moves stands in contrast to Rudd’s promise of a solar revolution earlier this year.

Following her appointment to cabinet Rudd pledged to “unleash a solar revolution” for roof-mounted panels.

She told told the Hastings & St Leonards Observer: “I want to unleash a new solar revolution – we have a million people living under roofs with solar panels and that number needs to increase.”

The government has come under heavy industry criticism over the last month for a raft of cuts to both solar and biomass subsidies which it said is necessary “to deal with a projected over-allocation of renewable energy subsidies”.

Onshore wind has also sustained a body blow following the Conservative party general election victory with the announcement of the closure of the RO scheme for projects from April 2016.

The blow to solar, biomass and onshore wind could damage the UK’s ability to meet its renewable energy targets and legally binding emissions reduction goals ahead of high profile international climate talks in Paris at the end of this year, green groups argue.

The changes could also damage investor confidence in the UK energy market more widely.