The NFU has branded Government plans to slash the level of feed-in tariff incentives available to large solar installations as ill-judged and extremely damaging for renewable energy in Britain.

Details have only just emerged of the ’fast-track’ review of tariffs for solar PV and biogas. From August 1, a modest 900-square-metre solar roof rated at 100 kilowatts would see a 42 per cent cut in its generation tariff to 19p/kWh, while larger solar installations on rooftops or in fields would see incentives reduced by a massive 72 per cent.

Anaerobic digestion tariffs, on the other hand, are proposed to rise by just eight to 17 per cent (1p-2p/kWh for smaller systems).

Dr Jonathan Scurlock, NFU chief adviser for renewable energy, said: “We are horrified to see solar electricity incentives snatched away from our farmers and growers, many of whom have invested substantial amounts of their own project development money in good faith.

“These are not adjustments to the incentive scheme – this is an ill-judged slash-and-burn decision that sends an extremely damaging message to investors in UK renewable energy.”

The proposed deep cuts in solar tariffs above 50 kilowatts will render many farm rooftop schemes uneconomic, and the potential agri-environmental benefits of large solar farms will become a lost cause. No transitional arrangements have yet been announced for installations already under development.

Dr Scurlock added: “The fast-moving international solar industry will be driven from the shores of Britain, and the government will struggle to decarbonise power generation without the confidence of investors in land-based renewables. The timing could hardly be worse – this is a ghastly strategic mistake.”

The NFU is also disappointed that the detailed work on improving the AD tariffs that we and other stakeholders have put in with DECC officials has resulted in such a modest uplift in rates. Our shared recommendation to restrict any tariff uplift to plants holding an on-farm environmental permit was also ignored. We understand that some previously marginal projects may now progress, but this is unlikely to result in the ’huge increase’ in farm-based AD that the government had been promising.

The NFU will continue to work closely with both DECC and Defra to address the economic and regulatory barriers to AD, and to stimulate the uptake of farm-scale biogas.

The UK government has proposed cuts of up to 70% to the feed in tariff for large scale solar energy production.

The proposal would be implemented on the 1 August, reducing payments to farmers or owners of large commercial buildings.

The industry has reacted with anger to the proposal.

And investors have warned that cutting the scheme just a year after it was created will deter further investment in renewable energy.

“The whole investor market was totally disengaged as a result of the feed in tariff being ripped up,” said Ben Warren, partner with Ernst and Young, a consultancy.

‘Absolute disaster’

According to the government’s proposal, , which is subject to consultation, payments for any solar installation over about 50kW would be reduced.

The full reduction would apply to installations from 250kw to 5MW – the standard size for a farm based scheme.

“It’s an absolute disaster,” said Ray Noble, solar specialist at the Renewable Energy Association.

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No new projects will start after this comes into effect”
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Ray Noble

Renewable Energy Association

Farmers rush for solar panel riches
“No new projects will start after this comes into effect.”

The tariff had not been due to be reviewed until 2013.

The new scheme is designed to preserve funds, which come from consumer bills, for schemes on domestic roofs.

These tend to be more expensive and generally need greater subsidies.

Climate change minister Greg Baker said the new tariff will be on a par with subsidies paid for large scale offshore wind.

“I want to make sure that we capture the benefits of fast-falling costs in solar technology to allow even more homes to benefit, rather than see that money go in bumper profits to a small number of big investors,” he said.

The emphasis on small scale installations is likely to reduce the total amount of energy generated from the scheme whilst encouraging public engagement in renewable energy.