Solar subsidy to link to falling cost of PV panels

Climate change Minister Greg Barker and new secretary of state Ed Davey (replacing the recently rsigned Chris Huhne) are today expected to announce changes to the way renewable subsidies are paid, in light of the contreversial and ongoing attempts to reduce solar FITs by half.

In particular, they are expected to announce reforms to the way the feed in tariff is administered so it is financially sustainable and increases certainty for investors.

We understand that the government will introduce a mechanism that will gradually reduce the FIT to match the falling price of photovoltaic panels.

Read more about FITs in our articles on the review process and the attempts to force through a substantial cut in FIT payments.