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Councils respond to Government losing solar panel appeal
LGA media release 25 January 2012
Responding to the Court of Appeal's verdict this morning that the Government's proposed cuts to Feed-in Tariffs would be illegal, Councillor David Parsons, Chairman of the Local Government Association's Environment Board, said:
"The notification of this cut and the decision to appeal has created huge uncertainty.
"It is imperative that Government now acts swiftly to try and resolve the uncertainty by setting out a workable and fair way to promote renewable energy and make solar panels affordable.
"By announcing cuts to subsidies at such short notice, the Department for Energy and Climate Change (DECC) caused the cancellation of thousands of solar panel installations.
"Some councils were left with little choice but to let down thousands of tenants while writing off millions of pounds which had been spent preparing and tendering for solar panel installations which would never see the light of day.
"This has also caused damage to local economies with renewable energy firms shedding hundreds of jobs as a result of contracts falling by the wayside.
"As solar panels become cheaper, it is right that the rate of Feed-in-Tariff should be reduced accordingly. However, current proposals would mean social housing tenants receive a lower rate of subsidy than people who rent privately or own their own homes.
"Families in council and housing association homes pay, through their electricity bills, for subsidised installation of solar panels and it is only right they get the same fair deal as everyone else.
"We would urge the Government to go back to the drawing board and ensure that its reform of Feed-in Tariffs does not price the most vulnerable in society out of solar energy."
ends
Author: LGA Media Office
Contact: LGA Media Office, Telephone: 020 7664 3333
Notes for editors
1. The current rate of subsidy for solar panels schemes up to 4kw in size is 43.3p/kWh. Under cuts being proposed by the Department for Energy and Climate Change this would fall to 21.0p/kWh for any schemes with an eligibility date after 12 December 2011. For multiple installations such as those on social housing schemes the rate would be 16.8p/kWh.
Press notice on the Department of Energy and Climate Change website
26 January 2012
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