This week has seen a flurry of social media activity around DECC’s proposed reductions in the Feed-in-Tariff. There are suggestions that the consultation process will be extended into the new year due to the high level of responses DECC has received (over 55,000 in total). Complicating matters further, there is also a degree of uncertainty around parliamentary process which suggests that if the outcome of the consultation process is negative (ie. the FiT is reduced drastically, or abolished), then 40 days notice is required before the changes can come into effect. On this basis, it may be March before the changes come into being.
The situation is confusing to say the least, and the lack of clarity is exasperating for the renewables sector. With many solar PV installers facing closure at worst, or a radically revised business model at best, planning in the current environment is extremely difficult. With 20-30,000 jobs at risk we can only hope that things become clearer sooner rather than later.
In other developments, the Government confirmed this week £1 billion ring-fenced capital budget for the Carbon Capture and Storage (CCS) Competition is no longer available.
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