Businesses, energy sector bodies and unions have joined calls for the Government not to implement major cuts to solar power subsidies.
They warn moves to dramatically cut “feed in tariff” payments for generating electricity from small scale arrays of solar panels on roofs could cost more than 20,000 jobs and stall the “solar revolution” the Government claims to want.
Ministers have said the cuts, which are predicted to lead to nearly a million fewer renewables installations over the next five years, are necessary to prevent rising green energy payments hitting consumer bills.
But companies including Ikea and Panasonic have joined investors, industry bodies Energy UK and RenewableUK, the National Farmers’ Union, the TUC, and a raft of green and community groups to call on the Government to rethink its plans.
The call comes after a report by EY warned the UK had fallen out of the top 10 for attractive countries in which to invest in renewables for the first time following a series of announcements by Government on curbing clean energy subsidies.
Politicians including London Mayor Boris Johnson have raised concerns about the move on rooftop solar, with Mr Johnson warning it would be wrong if the cut in the feed in tariffs stopped people investing in solar power.
Businesses and organisations signing up to the call to rethink the plans say they accept that subsidies for technologies “cannot go on indefinitely”.
But they say Government changes should be done in consultation with interested parties to retain investor confidence and allow a smooth transition to solar being the same cost as energy from the grid.
In a statement they warn: “Your own analysis shows nearly a million fewer homeowners, social housing providers, businesses, community groups, local authorities and farmers will be able to join the ’solar revolution’ you called for just four months ago.”
It is vital to engage society in making the shift to a low carbon economy, they say, and point to a recent survey showing that 78% of people want the Government to enable investment in local renewables.
“The impressive momentum achieved by diverse communities to date must be accelerated, not curtailed, particularly as we head towards the crucial climate talks in Paris,” they say.
Friends of the Earth renewable energy campaigner Alisdair Cameron said: “The Government’s attacks on solar power could cost more than 20,000 jobs and billions in investment, and risk the UK falling far behind other nations in developing crucial technologies.
“For the first time in centuries the UK is no longer at the forefront of developing new energy technology and infrastructure, and government policy is responsible.
“The Treasury must urgently listen to those investors, entrepreneurs and MPs who recognise the strategic importance of renewable technologies like solar power, and it must work to support the industry, rather than destroy it.”
Leonie Greene, head of external affairs at the Solar Trade Association, said: “The Government’s proposals for British solar are extreme and they are damaging for both the industry and for consumers.
“Solar puts people and communities in control and the Government should back that – not take power from the people. It doesn’t have to be like this, so we are reassured that so many organisations, from all walks of life, are joining our call for a rethink.”
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