The Governments shock decision to slash the Feed in Tariff for Solar Photovoltaic panel schemes has ruined the plans of many social landlords the length and breadth of the UK this week.
The decision by the Government to cut the tariff by such large amounts, from 41.3 to 21p per unit for domestic installations and 41.3p to 16.8p per unit for multiple sited projects will render schemes by Housing Associations and councils unviable and may leave some organisations with big monetary problems if they have signed contracts for dates after the December 12th deadline set by the Government. Many housing associations will certainly have spent time and money researching the project and checking if landlord insurance policies cover the the structures to go up on domestic buildings.
Matthew Rhodes, a managing director of a company who were fitting the panels, said “One of the worst aspects of this week’s FIT announcement is that organisations who have taken this more thoughtful approach stand to suffer most, because their development times are often longer and they may be part way through installation programmes, already tendered and commissioned, that cannot complete before the December 12 deadline.”
It is the second time in a few months that the Government have moved the goalposts on the Feed in Tariff and the “green” credentials of the Coalition have taken a big knock. The news will come as a blow to many private companies who have set up businesses over the last 12 months thinking solar panel installations were here to stay. It will be an even bigger blow to individuals who have paid for courses which qualify them to start up their own businesses fitting the panels.