Government to close solar incentive loophole

25.07.11

The DECC is taking steps to close a regulatory loophole that could allow developers of new large solar photovoltaic installations to enjoy higher feed-in tariff (FIT) payments, even after the level of subsidy is cut in August.

The Government chose to cut FIT incentives for solar installations with over 50kW capacity by up to 70%. The cuts aimed to allay fears that these large generators would stop funding going to those with smaller rooftop solar panels.

However, when making the changes, officials left in legislation allowing some solar developers to avoid the cuts.

A spokeswoman said:

"We will be taking action shortly to close a technical loophole which still remains in the feed-in tariff scheme.

"This does not change our plans to introduce new tariffs for large scale solar developments from 1 August."

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