ECA warns High Court judgment could kill off FITs permanently

(23/01/2012)

The Electrical Contractors’ Association (ECA) warns that if the Government loses its appeal on reductions to feed-in tariffs, it could be the end for solar PV tariffs.

Paul Reeve, ECA Head of Environment says: “Faced with the scenarios in front of us, we do not want the Government to lose its appeal. If it loses, it could be the end of FITs. This is because there will be a second industry and consumer dash until March 3 to install small scale PV equipment, to earn FITs at over 43p/kwh before the Government can bring down the shutters.”

He continues: “Regardless of whether the Government wins or loses, a second run on FITs will clean out any remaining cash for domestic PV, throwing the whole industry from feeding time to famine in a period of weeks. Faced with this option, we'd greatly prefer that the industry, which is already adjusting its business models to accommodate lower FITs at around 21p, has predictable and longer term support from Government".

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