Solar feed-in tariffs fall by half

Subsidies for solar panels installed after Monday will fall by as much as 50 per cent from next April, assuming the government adopts proposals set out in the on-going consultation on its popular feed-in tariff scheme.

The consultation on new rates for photovoltaic (PV) systems with capacity of 250kW or below does not conclude until 23 December. But the government’s controversial package of reforms suggest the proposed cuts will come into force for installations completed 12 days prior to the closing date of the consultation exercise.

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Would tariffs placed on Chinese solar panels amount to “protectionism?” Are the companies most critical of the trade complaint “just crying foul?” And what’s more important to American companies, the race to grid parity or the desire to reclaim solar manufacturing from China?

With the creation of competing coalitions, the sides have been clearly labeled, and the opinions have become increasingly entrenched. But there remains a striking lack of clarity about what happens if and when tariffs are placed on solar panels and cells imported into the U.S., and how that could ultimately impact American businesses and American solar capacity.

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Householders who are in the process of having solar panels put on their roof have six weeks to complete the job or face seeing the predicted income they generate slashed after the government said it was cutting feed-in tariffs by 50%.

Despite pledging to be “the greenest government ever”, the Tory-led coalition last week shocked the renewables sector by announcing that only installations completed by 12 December would get the full payments they were promised. Hundreds of householders who had signed contracts to have panels fitted have now pulled out and others are expected to follow.

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Lanco Solar CEO V. Saibaba has stated that he thinks solar power costs  in India could come down 40% by 2015, which would make solar cost-competitive with other energy sources even without subsidies correcting for the social costs of dirty energy.

Due to the growing solar market for solar and technological development, the rupee per kilowatt price of solar is projected to drop from 11-12 to 7-8. ”The most important thing is the economics of scale are coming,” Saibaba told Reuters on the sidelines of a solar industry conference. “In the next three to four years, I see the solar power costs coming down to 7 to 8 rupees a unit.”

India, one of the world’s largest polluters (in total, not per capita or per GDP), has a plan to invest $70 billion in solar by 2022, reaching 1,300 MW by 2013 and 20,000 MW by 2022.

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Pakistan Regulator Seeks Approval of Feed-in Tariffs for Wind

Feed-in tariffs for wind energy have been submitted to the Water and Power Ministry from Pakistan’s National Electric Power Regulatory Authority (NEPRA).

NEPRA has proposed a novel two-tier system of tariffs depending upon ownership. Pakistan will pay foreign wind developers less than domestically-owned companies.

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