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Is the government in danger of killing off our solar economy before it begins?

Submitted by Peter Elliott CMgr MCMI on Fri, 18/02/2011 - 18:38

The Independent today reports that "Solar power companies are considering a legal challenge to Government plans for a review of the "feed-in tariff" (FIT) scheme, set up last year to boost investment in green energy schemes":

http://www.independent.co.uk/news/business/news/solar-companies-mull-legal-challenge-to-huhne-2214030.html

Is this just a smokescreen by the energy companies who are taking away the subsidies from the smaller consumers for whom it was intended or is this really a damaging development that threatens the fledgling solar economy in the UK? 

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Submitted by Mike Davies on Sat, 19/02/2011 - 20:00

If an industry can only survive because of subsidies then it doesn't get much support from me.  The industry has had plenty of time to stand on its own feet by now and has to start doing so.  There has been a huge amount of PR in support of the so called green economy but I really don't think solar is going to be a goer for British companies.

Submitted by Adrian Gaskell MCMI on Fri, 11/11/2011 - 11:02 Profile image

The Government’s decision to slash subsidies for solar panels is its third “own goal” in a year, a group of business leaders will warn today.

http://www.telegraph.co.uk/earth/energy/solarpower/8882567/CBI-accuses-Government-of-own-goal-over-solar-power.html

Submitted by Adrian Gaskell MCMI on Fri, 11/11/2011 - 12:51 Profile image

The cost of solar cells and microchips has nowhere to go but down because of a supply glut for the commodity they’re made from, a brittle charcoal-colored semiconductor baked in ovens at 600 degrees centigrade.

Polysilicon has plunged 93 percent to $33 a kilogram from $475 three years ago as the top five producers more than doubled output, data compiled by Bloomberg shows. The industry next year will produce 28 percent more of the raw material than will be consumed, up from 20 percent this year, said Robert Schramm- Fuchs and Shai Hill, analysts at Macquarie Group Ltd.

“Polysilicon is a grossly, grossly, grossly oversupplied commodity product,” said Paul Leming, director of research at Ticonderoga Securities in New York.

http://www.bloomberg.com/news/2011-11-10/solar-glut-to-worsen-after-pric...

Submitted by Vincent Pizzoni FCMI on Fri, 11/11/2011 - 13:15

There was an article in the Sunday Times recently that talked about the issues with Solar. I think it was headed "Is the sun setting on Solar Energy?"

The supply and demand situation seems crazily out of kilter. Yet again China seems to be ahead of the game http://www.upi.com/Business_News/Energy-Resources/2011/08/02/China-taking-solar-power-lead/UPI-16621312288682/

Submitted by Mike Davies on Fri, 11/11/2011 - 13:53

Why are we pushing a technology when as a nation we're not very sunny?  Surely there are renewable energy technologies better suited to our climate?

Submitted by Christopher Maude FCMI on Fri, 11/11/2011 - 14:50 Profile image

I was in the process of getting quotes for two large buildings when this was announced, and have spoken to people with PV panels.  What I’ve learned is (a) the technology works well in cloudy weather and (b) the lack of consultation has caused chaos in the industry and for potential customers. 

The rights and wrongs of subsidies are one thing, but poor consultation is a no-no in management – something government will never learn, I feel. 

Will I become a customer and help boost feed-in energy to the grid, pay VAT to the Treasury, and help suppliers provide employment when we’re on the verge of an economic depression?  Who knows now, and what does that say about government ‘planning’?