Solar panels slump 80% after huge cut to subsidies

SOLAr panel installations have fallen by 80 per cent following a massive cut in government subsidies.

Families across the country have turned their back on solar power, despite a trend that previously saw thousands a week install panels on their roofs to cut their bills and sell power back to the National Grid.

It comes after the Government cut the tariffs providing cashback for households by 65 per cent last year – a move branded ‘misguided’ by critics. Solar power has been hailed by energy Secretary Greg Clark for creating ‘mini power-stations’.

But the cut to the feed-in tariff, coupled with a massive hike in business rates, has slashed the number of installations by 81 per cent in the first three months of 2017 compared to the 2016 average.

The number of people putting solar panels on their homes is now at a sixyear low, said the Solar Trade Association, which produced the figures from Government statistics.

‘The Government is hindering market competition against the best interests of consumers by suppressing the tremendous potential of solar power in the UK,’ chief executive Paul Barwell told the Independent. ‘Solar is being needlessly impeded ... by shock taxes, red tape and by a serious failure in the only remaining supportive policy. we urge Government to act now to stabilise the industry.’

Between January and March there were around 650 household deployments a week – down from an average of 2,700 since 2010. There has also been a 65 per cent drop in the number of large-scale solar schemes, which backers say may be down to the business rate increase.

It follows the controversial decision last year to slash payments to households for their solar energy from 12p per kilowatt hour to just 4.39p. The Government said this was necessary to curb rising costs of green energy on consumer bills.

reza Shaybani of the British Photovoltaic Association, which represents the solar panel industry, said: ‘The Government is telling people be green, be efficient and create your own energy, but they are cutting the amount of money they pay people for that solar energy. This looks hypocritical and it sends families and businesses a confusing message.’

The Department for Business, energy and Industrial Strategy said: ‘This Government wants Britain to be one of the best places in the world to invest in clean, flexible energy. Solar power is a great success, with over 11Gw of capacity installed in the last five years - that’s enough to power more than 2.6 million homes.’

‘A confusing message’