When rumors that the UK Government planned to cut solar subsidies by over 50% proved to be true, the solar industry launched a vocal campaign for more manageable, long-term cuts. They recognized the need for lower tariffs, but argued that the breakneck speed and drastic nature of the cuts was creating a classic government-induced case of boom and bust in a promising new industry. Now Business Green reports that the Government's own figures are casting doubt on the argument that cuts must be made before the end of the year, with the economic impact of delaying the cuts until April of the following year being minimal:
Delaying the government's proposed cuts to solar feed-in tariffs until April next year would add between 10p and £1.60 to annual energy bills, according to the Department of Energy and Climate Change's (DECC's) draft impact assessment of the controversial changes.
The 27-page document (PDF) was published on the DECC web site yesterday, providing an assessment of the economic, financial, and environmental impact of the government's choosing to maintain solar incentives at current levels, impose deep cuts to incentives from April next year as originally planned, or bring cuts into effect from 12 December as proposed earlier this week.