Recent speculation in the UK media has prompted some of the leading names in the country’s renewable energy industry to send out a warning to the Government that premature cuts to solar feed-in tariff rates could severely damage the sector, which has only just begun to take off, reports PV-Tech’s UK sister site, Solar Power Portal.
The letter, which is signed by more than 60 figureheads in the renewable industry, states that, “The “feed-in-tariff” that guarantees small-scale producers of renewable and low carbon electricity a long-term fixed price for their power has given investors the confidence to grow an industry rapidly and in line with the Government’s expectations.”
However, “Premature adjustments to the tariff would have a profoundly damaging effect on long-term investor confidence in the clean tech and renewable energy sectors, and may cause investors to flee altogether, thereby stifling any future investment and seriously jeopardizing this country’s ability to meet its climate change and renewable energy targets.”
Industry executives urge the UK’s chief secretary to the treasury, Rt Hon Danny Alexander MP and the secretary of state business, innovation and skills, Rt Hon Vince Cable MP, to “leave feed-in-tariffs well alone, at least until April 2013.”
This warning comes just weeks before the country’s Comprehensive Spending Review, where the UK Treasury might force the Department of Energy and Climate Change (DECC) to cut the feed-in-tariff paid to producers of low carbon electricity ahead of a planned review of tariff levels due in 2013.