U.K. Signals Solar Subsidy Cut to Curb ‘Unacceptable Returns’
By Marc Roca – Oct 27, 2011 1:22 PM GMT+0100
Energy Minister Greg Barker signaled the U.K. government will cut support for the solar energy industry, saying some investors were earning “unacceptable returns.”
Speaking to reporters at a conference in Birmingham, Barker said the Department for Energy and Climate Change would announce in the next few days its plans for adjusting the so-called feed- in tariff granting above market prices for solar energy.
He said the U.K. has experienced a “dramatic escalation” in installations of photovoltaic power plants and that the government budget needed to be protected from the amount of support it grants the industry.
“We need a credible path for a sustainable industry,” Barker said. He didn’t give details about the new rates that will be announced.