Dear Mr Huhne,
In just 48 hours, industry and consumers have come together to fiercely oppose your department's plans to introduce a December 8 cut-off point for the higher Feed-in Tariff rate for solar PV.
And the reason for such a remarkable response, is simple...
You called on the country to help save the planet by switching to renewable energy.
Your Coalition Government called on the country to help save the economy by supporting SMEs.
The Feed-in Tariff programme tied both policy aims together.
But responding to the leaked details of an early December cut-off point, the market's message couldn't be louder – such an early switch will destroy the green shoots of an emerging, domestic, world-leading new industry.
You will be aware from your bulging inbox that the December deadline is too brutal – whilst most of the 4,124 people who have written in to ClickGreen in the last 48 hours, seem to agree with a reasonable reduction of the Feed-in Tariff, everyone disagrees with the six-week window to complete all outstanding installations to qualify for the 43.3p/kWh rate.
For the past two days, we have sifted and read through every single of the 4,142 messages - every email, website comment, Tweet and Facebook message received and each one tells a story of anger and frustration.
Of hundreds of stand-out comments, one was received from Professor Stephen Frankel, chair of the Wadebridge Renewable Energy project, who described how you had sent the market out on a marathon but went and sold the running shoes.
ClickGreen has been inundated throughout its 48-hour, weekend-long campaign and here is a tiny selection of messages that describe the depth of upset and worry on both sides of the market – from consumers and industry alike:
“Dear SOS, having spent a fortune registering and advertising and purchasing vehicles this comes as a total disaster for our company there will undoubtedly have to be redundancies, how can we expect the customers to have faith in this industry if the government can do a u turn like this, we also have a number of jobs in planning that are unlikely to meet the deadline especially as planning seems to be a slow process with many councils not completely understanding the rules, I hope for my companies sake that somebody changes these proposals.”
Chris Wright, Powercor.
“We are just at the point of submitting applications for a photovoltaic system for our church hall, and will now have to re-consider whether we should go ahead. This was to be our major contribution to the Church of England’s drive to reduce the Cof E’s carbon footprint by 80% by 2050. We deplore the hasty change of the rules, and fear that much of the PV industry will disappear, with loss of many jobs. Still, it doesn’t matter because ‘We are all in this together’!”
J Holliday, Fareham
“I’m appalled that they are reducing the FiT. We have gone through a rigorous assessment for the past 5 months, invested a lot of our own capital to get the business started. We have employed 20 people from the unemployment register, we are taking on 3 apprentices in January. We will not be able to do this if the Government reduce the fit in December 2011 . We have strategically planned for the FiT to come down a couple of pence in April 2012, but not by the percentage that is being announced and not in December 2011. If this happens, it will be devastating for our company. I have invested in solar training/health and safety training for every member of our installation team, this will just have been a massive waste of our time, resources and not fair on the staff that we have employed.
“Please consider the effect that this reduction is going to have on the people that have invested a lot of time and capital in this industry.”
Helen Black, Rainford
“Please register my utter disgust and disappointment at the leaked government proposal to half the FiT to 21p as soon as 8-Dec-2011 instead of the 2012 target. This is typical of an "all talk and broken promises" government voted in by the people, but obviously acting for others.
“I have been seriously considering a domestic installation and was close to an order for both my benefit and an attempt to act responsibly on green issues. The obvious incentive is the 43.3p / Kw FiT which softens the circa £11K outlay. An instantaneous reduction to 21p with stop any further plans I have to Go Green.”
Brian Hughes
“Following yesterday’s news we have been left with a feeling of total disbelief mixed with anger. Our company, along with many thousands of others, has invested huge amounts of time and money to deliver a product that can deliver so much to so many. This is now to be left ‘dead in the water’ by the government that (if this true) has broken their green promise.”
Ian Backhouse, B-Line Project Services
“I put down a deposit last week for a small PV installation on our house. At the age of 52 a 'pay back' of 8-10 years seemed ok, but 16-20 years does not seem to make sense for me. My friend was also considering having a few panels, but at the age of 58 I doubt he will either.
“Consumers are wary enough of spending money as it is, and this will just put regular working families out of reach for this market. I called the company I wanted to do business with but unfortunately they are unable to guarantee an installation date by 8/12 as, understandably, they are dependent on weather conditions and stock deliveries from suppliers.
“I feel really sorry for the small PV installation companies, in particular, who will now go out of business. Everyone I have dealt with have been helpful and enthusiastic about their jobs, and the REAL accreditation scheme made getting quotes from companies hassle free.
“The way the government are planning this 'cliff edge' cut seems totally unacceptable, especially to people who have already committed to buying some panels and are just waiting for the work to be done, and to small companies who's plans and staffing levels were based on the assumption that the Government would help encourage consumers adopt these new technologies. Surely more notice should be given, and more of a tiered decline introduced to enable the market to react and plan for the changes.
“It will be such a pity to see this new and growing industry be smashed into oblivion overnight, it seemed one of the few industries in the UK that was growing.”
Steve Young
“£750,000 of panels ordered two weeks ago. Nights are closing and we have to install all of this by Dec 8. This is ridiculous.”
Adrian Shiels
“I was just about to invest in a 3.5kW system. But now it's not viable as the lead time is 6-7 weeks, so it won't be possible to get online in time. This is a very short-sighted move by the government and will affect some people who have already committed but not had their systems installed.”
Gavin Greenaway, Weybridge
“New World Solar Installations Ltd would like to express our support for the 'Save our Solar Campaign' As an MCS registered company since 2006, the cuts to without doubt would course us to downsize our employees and leave us extremely vulnerable.”
Mark Clemson, New World Solar, Chelmsley Wood
“I have just posted my contract for solar panels, based solely on the feed in tariff. If this is announced on Monday I shall be cancelling my contact. Does the government really want us all to decide against the renewable energy option?”
Elizabeth Gibbs
"Greg Barker wants to restrict solar installs to those homes that are energy efficient. Doesn’t he understand how solar is becoming a far more efficient driver for retrofit and behavioural change than any number of grants and DECC schemes? Up until now, the market has failed to tackle fuel poverty. This cut will destroy social schemes, increase fuel poverty, create massive unemployment and destroy 18 months of resource, investment and built up expertise in solar.
“We need to be able to raise money to tackle persistent problems like fuel poverty. 21p will not let us do that. The government is sacrificing a lot more than FITs and solar.”
Adrian Mckeon, director, Homezone CIC
“I am writing to express my horror at the short-sightedness of the government's proposed reduction in Feed In Tariff which was accidentally leaked yesterday. We are in the process of ordering and installing solar panels. We have been working through this process since June of this year, and, in all, the process will have taken about 6 months. We have taken our time to sort through quotes, to find a good quality installer, and have then had to deal with our mortgage company (we are extending our mortgage to fund the project), our house insurer, our energy supplier, and building regulations.
“It is totally unacceptable to give both consumers and companies supplying and installing solar panels just 6 weeks notice for such a major change to the Feed-in Tariff. The reputable solar panel companies are struggling to fit installations in before the expected March 2012 change in tariff. It is a major building project for each and every installation (if done properly, rather than a rushed bodge job).
“And, in reducing the tariff by such a large amount, you will stifle the demand that has driven down the cost of such installations, and this will ruin a growing, much-needed green industry.”
Susan Lucas, Burgess Hill
“We have invested heavily in the last few months and currently carry out 35 domestic pv installs a week, we have moved to larger premises taking on a 5 yr lease and for what as the people we fit for are talking about wrapping up the business and thus we will be not only laying staff off but struggling to even pay our rent. What a scandalous decision this government are making. How can anyone trust them when they consistently change there minds?”
Mat Pickup, Eco SolarTech
“I object to the sudden change in FiT. I have paid my deposit cheque for 25% of the work for a 4kW system with an installation date of 9th December.(ONE DAY TOO LATE!) The government is not allowing enough time for contracts to be completed. I, like I guess, most other people on a pension would not invest their lump sum for the long pay-back the reduced rate will require.
Is our government really committed to green energy and fulfilling their EU promises?”
Alan Jones.
“After 18 months of unemployment I finally landed a job 6 weeks ago as a solar assessor for Homesun. Because of the job I had to get a pay monthly sim card for my phone as PAYG was costing me £30 a week, I also had to get a car and insure it requiring a loan. If the solar industry collapses because the government changes the FiT I will have no option but to return to unemployment benefit and housing benefit and council tax benefit and, as I will have no way of honouring my debts, I see bankruptcy looming. Thank you very much Con-Dems.
Mark Brown, solar assessor
“Just about to install solar PV on own home to supply power for Nissan leaf. Also going to install on 6 student houses as part of Eco overhaul of properties with solar thermal. Now put on hold.”
Phil and Karen Ternent
“Please reconsider the Feed-in Tariff cuts or hang your head in shame.You will be remembered as the government who had the chance to support one of the few success stories during the worst economic downturn we have seen in decades. Instead you will be remembered for the ones who extinguished the solar flame, put thousands of people out of work, shut down businesses”
“Well done to the Greenest Government Ever R.I.P”
Simon Annear, Simon Annear Plumbing & Heating Ltd, Truro
“We were about to install a 3.6KwH PV system, having just received planning permission. At 4% income we’ve decided to leave the money in a savings account and enjoy the additional benefit of immediate access if we need it. Making a 25 year commitment requires a return of something more than 4%!”
Mr D Ayling
“As a solar PV installer a 6 week deadline does not give us the time to honour our current order book nor prepare our business for the lower tariff rate which we have been planning to come into effect in April.”
Andy Yuill, Icon Solar Energy
“Regarding the possible installation cut-off date of 8 December in order to benefit from current feed-in tariff after 31 March 2012, this seems completely unfair, particularly for home-owners who have ALREADY ordered solar panels and paid a deposit etc but are waiting for planning permission (which is needed in some cases) or other consents. If the permissions/consents do not come through in time to complete installation of panels by 8 December, such home-owners may have to go ahead with the installation under their contract with suppliers, but will receive only the reduced tariff from 1 April 2012, totally contrary to their valid expectation when they originally ordered the panels (it being understood by the whole industry that any reduction in tariffs would not apply to installations completed before the review announcement planned for March 2012).”
Timothy Ling
“We have been talking to investors overseas who are contemplating investing up to US$ 80m into the UK solar industry. They were particularly interested in the education sector – schools, colleges etc. The council tax payers would have benefited by up to £5m saving per annum in the cost of running these schools. Dear Minister, do you think these investors will now go ahead?
Mike, Berkshire
“I am 67 and have just signed up to have solar panels fitted at a cost of £11,950. If the job is completed before the 8 December the panels will be paid for in 8 years. I am not in good health but I think I may live to see a small return on my hard earned cash. If I have to wait another 4 years (at the 0.21p rate) before I get a return I will probably have passed on! This will kill the market for people like me as I would not have gone ahead with this sort of uncertainty in the market and the proposed lower FIT and I am sure other pensioners will cancel and put their money in the building society.
I SAY TO THE GOVERNMENT - PLEASE DON’T KILL THE SOLAR PANEL INDUSTRY AND PUT 25,000 PEOPLE OUT OF WORK!”
John Mitchell
“I am 58 years old and have spent the last 3 years re-skilling to create my own job opportunities within renewables. This swinging reduction in the FiT has now ruined my work and finished my last job prospects. Given the financial climate and the huge profits made by traditional energy companies how can the government reach this conclusion. I could go on but I am so angry.”
Tony Smithson
“Have just filled in order form, require planning permission for ground mounted domestic scheme – how can it possibly be done by December 8th. Not interested in lower tariff. Therefore company I have ordered from will dip out on my order during the 7 day cool off period. Not a good way to preserve jobs in this UK industry.”
Caroline Floyd
“We employ ten people, who if this is right, are not going to have a job in the run up to Christmas. They complain that only hi net-worth individuals are benefiting? Rubbish. 90% of our customers are retired, and sitting with toxic money sitting in dead accounts that earn little or no interest, and therefore, pay no tax. So, instead they are spending the money with me, I pay my employees, who then spend in the economy, the local economy. In turn, they receive a good return on their investment, which raises the feel good factor, and they also start to spend, and that is without the reduction in their electricity bills!
“It’s all win/win to me. Or at least it was. Why do they not just charge the full rate of VAT instead? This will make it self supporting. Come government, wake up and stop changing the rules!! These are peoples lives and futures you are playing with.”
Dylan Baldwin, Starfish Installations
“I am in the process of signing up for a solar PV install on my house (signed paperwork just last week). I have done my research (including info from the EST and various government organisations) on the basis of the information given to me about current FiT rates and a likely change from April 2012. Originally planned install for January but now will have to see if installer can install before Dec 8th ! What a farce. I don't object to a tapering reduction in the FiT rate, that was always inevitable as the price of installs came down, but how can anyone - householders, builders, installers, etc - work on the basis of a system that can be torn up in such a dramatic way with just a few weeks notice. Has the price of installations suddenly dropped by 50% ? I don't think so. We always hear how what business needs is stability not constant policy changes and that's all we seem to be getting at the moment. I will have to see what the installer says and decide whether to risk going ahead or cancel the contract while still in the cooling off window.”
Will await Monday's statement with interest.”
Andrew
“It just goes to show that the government can't be trusted and will not support any growth or industry in this country. Companies small and large have invested in this industry, trying provider sustainable future moving forward.
“The question I have is what is the cost to the taxpayer in regard to loss of jobs, and 25+ thousand people claiming benefits and not contributing to the economy?
“I believe the solution to this is to keep Feed-in Tariff at its current level until 1 April drop as predicted. This would allow industry to clear it decks and embrace futures tariff drop moving forward without the burden of stock/debt which would ultimately lead to the failure of most companies.”
Steve Frost, Devon Eco Energy
“We want to add our names to your campaign to get the government to honour their agreement about Feed-in Tariffs. How can we be expected to ‘go green’ if they show such disregard for clean energy incentives. We have just decided to go for solar power and are horrified that the FIT’s are going to be so drastically cut.
“How hypocritical of this government – spend millions on war and nuclear stock piles and ignore the little people who are trying their best to cut their energy costs and carbon emissions. Please do what you can to pressurise them to reverse this decision.”
Maureen and Jim Harrison
“Hi, in the process of a business start up, this is horrible news. Please stick to the original goals posts, and allow some time for customers and businesses to install at current rates until 31-March, and implement any changes then.”
Lu Grundhofer
“As a pensioner I have invested money to protect myself from the ever rising costs of electricity and my concern for the need of Green Energy in the lifetime of my grandchildren. Not a minor investment I may add!
“The small but long term Feed –in Tariff is an essential part of my contract and influenced my decision greatly. Not for financial gain, because there is none to be had if one does the true calculation, but for security and peace of mind knowing I had done all I could to reduce my electricity bills when living on a fixed small income. Money spent now to protect ones future is what we should all be doing.... so the politicians tell us!!!!
“I tell them to.. PUT THEIR MONEY WHERE THEIR MOUTH IS !!!!”
David Wallace
“The changes will bankrupt my company as I will not have time to use all the product I have purchased. We will have to look at making 25 people redundant, most of which we have trained in a new industry and taken from the dole previously. So much for money spent on MCS accreditation.”
Richard Haywood, Shape Energy Limited
“Whilst I appreciate the FiT is actually quite high, being approximately twice the rate consumer pays for incoming electricity, that level is not sustainable over a long period. However, I believe the original cut-off point was going to be 2 years from introduction, i.e. 31st March 2012?
What’s wrong with keeping that date? It will give many more applicants time to get a system installed, whether they pay themselves or get a “freebie” as I have just done (yesterday!)
It’s essential this country does all it can to reduce power consumption and solar is “THE” way to go. Let’s give all the people a chance, not just those lucky enough to have got in early at the right time.”
Mike Long
“I have recently started a new business Torbay Eco Energies with the Feed-in-Tariffs being advised that the dates will be up until 31st March 2012. I cannot believe the Government are considering bringing this date forward. It's the energy provider paying these tariffs not the Government why are they even considering this? They have put in place strict guidelines for the MCS to insure quality installations that should take at least 6 weeks therefore orders and quotations are already in place with customers having waived their cooling of period of 7 days, where do they now stand if the installation cannot take place in what would be now less than 5 weeks if the Government put this in place for the 8th December?
“The bigger companies who are offering free solar should be curbed. I can understand why this would be taking place to stop them but the consumer who has decided to invest in these systems gets hit once again by the Government, I suggest that they think very carefully before putting this into place. Please advise if there is anything else we can do before this is agreed on Monday?”
Lynne Payne, Torbay
“I would like to add my voice to the outrage at changes being brought forward. I have been pursuing an installation of 10KVA array in our field, but planning may well not be through before December, and then the installation would have to go in. It not possible to speed to speed up planning significantly so it may well be that I cannot afford to go ahead with my proposals.
Please add this to any petition.”
Chris Southwell, Haverfordwest
“Count me in!”
Nigel Calmonson, Eco Environments
“Please add my name on the list for the opposition to the Feed- in Tariff reduction, I had my 3.8Kw system fitted last week! I had bought the panels to reduce my reliance on imported electricity which I heat my house with, I am disgusted with the government who break promises. This is not what the industry needs and what about Britain’s poor C02 emissions reductions?. Can we get EU legislation to comment.”
John Gibbs
“Reduction of the Feed-in Tariffs will destroy our business and force us to make people redundant. We stand to lose everything we have worked for and urge you to think carefully about any reduction to the feed in tariff. Surely a better way forward would be to stop speculators buying roof space and make the feed in tariffs only payable to the person in whose name the electricity meter is registered. This way the take up would steadily build to support a small company's like ours.”
Sam, PeninsulaSolar
“My proposed imminent 10K investment of my personal cash savings (having just saved up enough by early next year), with a probable 10 year payback is now in jeopardy thanks to the Government’s short sighted indecision. A 21p tariff would mean a 20 year payback period by which time I will be 80 years old and other people intending to invest would no doubt be older or dead.
“There is then the effects on the electrical installation industry, which was just looking to employ extra people, including my son (20). He has been out of work since he was 18 and was just about to get a position in an energy installation company.
“I can understand the need to review these tariffs at intervals, but everybody knew the review date as set and would have perhaps expected the government to honour its commitments. How can anybody plan financially on investments with such knee jerk decisions?
Mr S.Hewes
“We are a new company to solar PV installations, awaiting our accreditation, this has plunged all our future plans for the business into disarray, the governments decision to dramatically reduce the FITS tariff before the end of March is very short sighted and I believe misguided.”
Andy Jones, ADS Electrical
“We have just had our panels installed and are not yet on the tariff-hopefully it will be sorted in time. What about all those other people who are trying to save energy-why change it now without warning?”
Janette Griffin
“This is outrageous! How on earth do they expect small business's to cope??? We might as well all pack up now and throw in the towel. What a way to ruin the industry!”
Chris Alder, C.A Solar
“I am appalled that government is considering cutting the FiT by 50%. I am considering having panels installed and will now have to cancel. This was an effort on my part to "Go Green". If this goes through I will not support this government any more. I am completely disappointed in their policies which hurt most of their supporters most of the time. Sorry BUT you have lost my vote!!
In disgust”
Roy
“I am 22 and have set-up a company selling solar PV panels. Having invested in the company to get it going over the last 10 months we just got MCS accreditation and now it will all be wasted as very few will dare invest in the feed in tariff, with a total loss of confidence in the system.
“With student loans and now a business investment upwards of 25K the government have cost me many years of pain if what has been leaked is true. The only booming industry will fall flat on its face overnight!!!!
“Hoping this is all a disgusting joke”
Lloyd Scott
“I was going to place an order for 16 solar panels today, having waited a few days for the quote to come through. This shocking announcement now almost certainly means it will not be worth proceeding with it. can we never trust anything we are told by the government?
“Thanks for wasting hours of my time.”
Steve Westby
“21p is going to kill the domestic solar business in the UK for all but the wealthy few in the south-west who have £10k to spend. The key criticism of the FiT scheme has been that it is socially regressive – the Free Solar model for both social and private housing has been the strong counterargument to challenge this. Free solar will disappear under the proposed changes, proving these naysayers right. In addition most of the companies that have emerged as a result of the introduction of FiTs will disappear – along with the new green jobs that the government was so keen to support.
“So the UK FiT scheme will have started to build and then destroyed an industry, all within 21 months and be left with nothing more than a £120m/year bill for the next 25 years to show for it (the likely ongoing cost of the systems installed by 8th December). What a shambolic waste ! So much for greenest government ever.”
Bill Sneyd, Homesun
“We are just in the process of organising a solar PV system, if changes happen by 8th Dec will now have to cancel, ‘greenest government ever’ stuff and nonsense!!! They are untrustworthy and do not deserve to lead our country.”
Sally & Gerald, Devon
“This week I had been getting quotes for a £12,000 investment in solar PV. This would be added to my mortgage which is a 5.19% fixed rate. I live in a conservation area and don't see how I can get it installed before the cut off time though I had wanted it before Christmas. This stupid decision now means that I cannot justify the cost as the return will be less than the amount I have to pay in extra interest. The government are cutting off their nose to spite their face.”
Isle Biggs
“Shocked to read that the government is planning to slash the FiT perhaps as soon as 8th December. Was expecting there to be a cut from April 2012 for new installations but not existing. Bringing the date forward so much will make it impossible for anyone to install PV panels before the new deadline which is extremely unfair.”
Mrs Susan Elworthy
“I would like to add my voice to any campaign aimed to delay the proposed change to the FIT. I placed my deposit with a reputable installation company last Monday. They have a 10 week lead time which means that I will miss the deadline. I also have to conduct structural alteration to my home, to enable the installation, and the cost of this means that my return was already 5% per annum.
“I also feel very sorry for employees those companies providing solar generation who are unable to work in a stable economic environment and will now probably be loosing their jobs before Christmas.”
Paul Hillman
“The Tories do it again, I may have to cancel my order as the payback period is just too long at the reduced tariff.”
Simon & Rachel
North Energy, UK around 6 months, 2 weeks ago