LGA Voices Concerns On Cuts To Solar Energy

The Local Government Association (LGA) has voiced concerns about the announcement from the Department of Energy and Climate Change (DECC) on the feed-in tariff for solar energy and the effect this will have on council finances and local community projects.

These changes include:

• Reducing the generation tariff for a single installation of solar panels on an average home by over 50 per cent from 43.4p per kWh to 21p per kWh.
• Introducing this change 12 December 2011. This would require any schemes in the pipeline to have confirmation of registration from Ofgem in the next five weeks. This date is also before the end of the consultation.
• Making a further reduction where councils have schemes for social housing, on several of their own buildings or public buildings, of another 20 per cent, bringing the tariff to 16.8p per kWh.
• Requiring minimum energy efficiency standards for homes and buildings before the new reduced tariff can be claimed.

The LGA agrees that energy consumers should have safeguards on the amount of money that is raised from their bills to pay for schemes such as the Feed-in Tariffs. However, it is not acceptable to expect councils and the solar industry to not only deliver their projects, but also have them registered by Ofgem, in six weeks.


The LGA is seeking information from councils on:

• whether or not their local plans to roll out solar energy for their communities, own estate and on public buildings can go ahead, and are financially viable, with these proposed changes
• the likelihood of achieving the 12 December 2011 deadline and any additional costs achieving this will incur
• whether councils were expecting a five per cent or greater return on investment before the changes and whether this figure will be achieved after the changes
• the impact on local jobs and industry.