BREAKING NEWS: FITs Not Cut In Spending Review
Date: 20 Oct 2010
Chancellor George Osborne stood up in the House of Commons at 12.30pm today to detail the coalition government's Comprehensive Spending review.Finally, after a long and tedious wait, we finally know what lies in the future for solar feed-in tariffs in the UK.
After much speculation that the Coalition government would slash the feed-in tariff set by the Department of Energy and Climate Change, which was formed under the former Labour government, it was finally announced by the Chancellor that:
“The efficiency of feed-in tariffs will be improved at the next formal review, rebalancing them in favour of more cost effective carbon abatement technologies. This will save £40 million in 2014-15. Support for lower value innovation and technology projects will also be reduced, saving £70 million a year on average over the Spending Review period.”
Therefore feed-in tariffs will be refocused on the most cost-effective technologies in 2014-15. The changes will be implemented at the first scheduled review of tariffs unless higher than expected deployment requires an early review.
The Renewable Energy Association’s (REA) PV Specialist Consultant, Ray Noble said of the review, “This is excellent news for the UK solar industry. It’s exactly what the market needs in order to fulfill its fantastic potential. The outcome of today’s review could not have been better.”
For more reaction and information read The Guardian article here