Solar farms may sue over subsidy threat
RENEWABLE energy companies may take legal action, after the Government said it would review subsidies for large solar farms springing up across the countryside.
The subsidies, called feed-in tariffs, were intended as a way to pay householders above market rates to generate electricity from solar panels and small wind turbines on their roofs.
However, large-scale "photovoltaic farms" have soaked up much of the £360m fund.
Chris Huhne, the Energy Secretary, said: "Large-scale solar installations weren't anticipated under the scheme we inherited and I'm concerned this could mean that money meant for people who want to produce their own green electricity has the potential to be directed towards large-scale commercial solar projects."
Companies are now concerned that without government subsidies for large-scale farms, it will prove difficult to move the industry beyond an early-stage technology into profitability.
John Moreton, chairman of mO3 Power, one of the largest solar developers, said: "It is an absolute nonsense for companies who have invested millions to be left hanging by a thread as the minister tries to decide what he is going to do.
"MO3 believes that if the solar industry is reliably supported the cost of solar panels will drop by at least 40pc. This will create an environment where solar is comparable with wind generation, but solar is more reliable."
Some members of the Renewable Energy Association are now considering legal action. Gaynor Hartnell, its chief executive, said constraining the scheme "goes against the growth agenda".
"Non-domestic and community schemes have a vital role to play in the cost-effective and sensible development of the UK photovoltaic industry.
Many investors stand to lose out. I fear this announcement reflects the generally poor levels of ambition for photovoltaic in the UK."
Huw Irranca-Davies, shadow minister for energy, also warned the Government that it must act quickly or risk holding up vital investment.
He said: "Today's announcement could lead to many more months of uncertainty, so it is important that this review is completed promptly."
The subsidies, called feed-in tariffs, were intended as a way to pay householders above market rates to generate electricity from solar panels and small wind turbines on their roofs.
However, large-scale "photovoltaic farms" have soaked up much of the £360m fund.
Chris Huhne, the Energy Secretary, said: "Large-scale solar installations weren't anticipated under the scheme we inherited and I'm concerned this could mean that money meant for people who want to produce their own green electricity has the potential to be directed towards large-scale commercial solar projects."
Companies are now concerned that without government subsidies for large-scale farms, it will prove difficult to move the industry beyond an early-stage technology into profitability.
John Moreton, chairman of mO3 Power, one of the largest solar developers, said: "It is an absolute nonsense for companies who have invested millions to be left hanging by a thread as the minister tries to decide what he is going to do.
"MO3 believes that if the solar industry is reliably supported the cost of solar panels will drop by at least 40pc. This will create an environment where solar is comparable with wind generation, but solar is more reliable."
Some members of the Renewable Energy Association are now considering legal action. Gaynor Hartnell, its chief executive, said constraining the scheme "goes against the growth agenda".
"Non-domestic and community schemes have a vital role to play in the cost-effective and sensible development of the UK photovoltaic industry.
Many investors stand to lose out. I fear this announcement reflects the generally poor levels of ambition for photovoltaic in the UK."
Huw Irranca-Davies, shadow minister for energy, also warned the Government that it must act quickly or risk holding up vital investment.
He said: "Today's announcement could lead to many more months of uncertainty, so it is important that this review is completed promptly."
Taken from the Daily Telegraph 8 February 2011