MPs: Clumsy ministers have undermined solar investment

Thursday, 22 December 2011 11:20 AM

Tim Yeo, chair of the environmental audit committee, gives his judgement on the government's cuts to solar energy tariffs:

"There is no question that solar subsidies needed to be urgently reduced, but the government has handled this clumsily.

"Ministers should have spotted the solar gold rush much earlier. That way subsidy levels could have been reduced in a more orderly way without delivering such a shock to the industry."

Joan Walley, chair of the Commons' energy and climate change committee, adds:

"It doesn't make economic sense to let the sun go down on the solar industry in the UK. As well as helping to cut carbon emissions, every panel that is installed brings in VAT for the government and every company that benefits from the support is keeping people in work.

"The government is right to encourage people to focus on saving energy before fitting solar panels, but these proposals will require most households to spend thousands of pounds on extra insulation before they even purchase the panels.

"This will stop nine out of ten installations from going ahead, which will have a devastating effect on hundreds of solar companies and small building firms installing these panels across the country."

Tags:
• carbon emissions
,
• renewable energy
,
• solar power