The solar industry was once a booming new sector in the British economy that promised strong growth, hundreds of new businesses and thousands of new jobs. But now, after a Feed In Tariff cut of over half at the start of the year, and another due in August, the solar industry now has about as much prospect for growth as an anemic vegetable.
The first cut to the FIT meant the rate was just 21p per KWH. A shocking statistic to come out of that cut is that in recent studies, installations of solar panels dropped by a massive 90%. The next raft of cuts die at the start of August will reduce the FIT to just a paltry 16p.
The Government has lost many court cases trying to push through these changes so quickly. But as with everything, the Government always wins through in the end, whether we like it or not. The solar industry has pleaded with them to stop the cuts as they are doing vast amounts of damage to the industry, putting thousands of jobs on the line and putting hundreds of business at risk where a healthy FIT was key to their business plans.
The Government claims that these cuts are necessary as the cost to make the panels has dropped significantly and that more people than initially expected had solar panels installed. Still, these don’t seem the most valid reasons to make such drastic cuts. If the Government is really serious about growth they need to be making it easier for sectors to make money, grow and prosper.
With the solar industry being forced into a limp, I do wonder if the double glazing industry will ever get behind it properly. At the moment there still seems a lot of effort for not so much gain. And with the amount of people actually having solar panels dropping by 90%, it seems unlikely for now that our industry will ever embrace this one until the numbers start to rise significantly again.
I agree that the drop in FIT rate has affected the solar industry but here in the Highlands where we arent on the grid for gas many people are still benefiting greatly even at 21p, we cant keep up with demand for them at the moment, after August when the price drops again to 16p if the panel price comes down in line we feel that there will still be a demand for them in our area