Solar subsidy plans under fire

BUSINESSES in Yorkshire have reacted angrily to Government moves to cut subsidies for solar energy.

Energy Minister Greg Barker has announced plans to reduce the subsidy for household solar energy, known as the feed in tariff scheme, from 43.3p/kWh to 21p/kWh.

The change could be brought in as soon as the middle of December which firms in Yorkshire argue gives them little time to prepare.

Ethos Corporate Finance has been helping solar panel firms in Yorkshire raise funds to develop their businesses.

Partner Chris Silverwood said: “There are going to be a lot of business that are going to be sitting there thinking they have no option but to go into administration. They have basically had the rug pulled from underneath them.

“There are a lot of businesses that have scaled up to do solar installation, taken on new people and invested in new equipment. The industry knew this was going to be reduced next year but this announcement talks about changes on December 12.”

The Government insists that a dramatic increase in the number of people installing solar panels in recent threatens to break the budget for the feed in tariff scheme if the rules are not changed.

Philip Mosley, who runs Norcroft Electrical in Hoylandswaine, said: “We all knew FITs were going to be reduced at the end of next March, but to cut them so much and so soon could kill a growing industry and put thousands of people out of work.

“We have orders on our books through to next March and there is no way we can get the work through in time. Everyone appreciates the Government needs to save money, but this is ridiculous.”