A German solar power plant owner has issued a warning on its annual results in the wake of proposed retroactive cuts to Italy’s feed-in tariff (FiT).
Project owners can choose to either take an 8% cut in their FiT payments or have them thinned out by accepting the same payments but over a 24 year period instead of 20 years under proposals unveiled last month.
Solar8 Energy, which has assets in southern Italy, is now anticipating poor results in 2014 stating: “[the] reduction of the current remuneration [is] a further significant burden on our cash flows and will have an impact on the company's earnings in the future. We expect a significantly negative annual result for 2014.”
Payment of FiT earnings will also be changed with companies receiving 90% of the site’s annual production over 12 monthly instalments with any additional required top-up paid each June.
Solar8 also said that it would require an additional loan if it was to be able to meet its current financing obligations.
Solar8 has a 14MW pipeline in Italy and 1.5MW already constructed, according to it’s website.
The government has until early August to approve the new laws.
The retroactive changes have been deemed “illegitimate” by some investors with legal action not ruled out.