The National Home Improvement Council (NHIC) has asked if the latest downward move – on what seemed to be a positive encouragement for home owners to adopt PV technology – is a retrograde step that could amount to an ‘own goal’ for the Government.
The NHIC said it had anticipated a reduction in the solar Feed-in Tariff (FiT) but nothing quite so deep as the current, ‘drastic’ cut by the Department of Energy & Climate Change.
NHIC director, Andrew Leech, said: “Our members who are closely involved with manufacturing and installing photovoltaic technology are, to put it mildly, very disappointed with this move.
“Although national and international prices for PV have reduced, no one appears to have expected the Feed-in Tariff to drop so dramatically, by around 50%!
“This will seriously influence home owners who are looking to adopt PV technology, as they will plainly see the payback period on their investment being unreasonably stretched. The social housing sector will be equally disappointed because they will see a significant drop, too, in their income from selling surplus energy back to the grid.
“The Feed-in Tariff reduction is said to be ‘phenomenally bad’ and will affect manufacturers and installers across the nation. There is also the very real danger this will further disadvantage the poorest and most vulnerable people in our society, who are less able to purchase direct or afford repayments through loan schemes.”