Chris Huhne is considering disposing of the current feed-in tariff system, which guarantees payments for a fixed period of time, in favour of a system where there is a limit on the amount of energy capacity that can be installed before the subsidy automatically falls, according to the Financial Times.
The proposal is seen as an attempt by Huhne to stem the considerable backlash from both politicians and the solar industry, who oppose the proposal to cut solar subsidies by over 50 percent on December 12.
The alternative model, which Chris Huhne and Greg Barker are rumoured to favour, would be based on the German system and include certain capacity triggers that would see subsidy levels shrink as installed capacity grows; removing the need for fast-track reviews.
Duncan Hames, a parliamentary aide to Huhne, told the Financial Times: “It would be naive not to plan for future cost reductions in panels. We need tariffs that will mirror reality and we should look to what they have been able to do in Germany to have a smoother path on the way to solar competing with other industries.”
The proposal of a “capacity trigger” model would go some way to help alleviate fears expressed by those in the solar industry, who marched on Westminster yesterday to lobby the Government for change.
Leonie Greene, Director of External Affairs for the Renewable Energy Association, said: “The capacity trigger could be helpful to us, as it would mean that if the price of panels doesn’t come down as anticipated, the model would account for that.”
“It is not ideal but compared to what we have got now it is a … thing of wonder and beauty.”
It is expected that Huhne will float the proposal during a Commons debate on the cut to the feed-in tariff for solar power due to be held later on today.
