Press release

"Cut don't kill" plea as Energy Minister Greg Barker addresses solar industry

27 October 2011

**Case studies of communities benefitting from solar power available from Friends of the Earth press office**

The Government should "cut not kill" if it is going to reduce incentives for solar power generation, Friends of the Earth warns today (Thursday 27 October 2011) as Energy Minister Greg Barker prepares to address businesses at a Solar Power UK Conference.

The feed-in tariff [FIT] scheme pays households, businesses, councils, hospitals and schools to create clean power through systems like solar panels. It has been hugely successful to date, with the creation of 80,000 new solar installations and 22,000 new jobs over the last two years.

With a comprehensive review of the entire FIT scheme overdue, but an announcement on solar tariffs expected in the next few days, Friends of the Earth is warning that deep cuts to the solar feed-in tariff could kill off fledging businesses, whilst providing less cash-back to households. Tariff reductions are due in April next year, but could be earlier and much deeper than expected.

Friends of the Earth's Final Demand campaign, launched earlier this month, says clean energy is the only way to stabilise bills in the long run and is calling on David Cameron to take urgent action to stop killing off clean British energy providers and break the stranglehold of the Big Six energy companies.

Friends of the Earth's energy campaigner Paul Steedman said:

"So many people want to save money by creating their own clean power that this scheme has been a victim of its own huge success.

"Solar payments should fall as the technology gets cheaper - but deep cuts to incentives will ruin fledging businesses.

"The Government should increase ambition for home-grown green power to enable more people to benefit - only clean energy will boost jobs and give consumers a better deal in the long run.

"That's why we've launched our Final Demand campaign for an inquiry into the Big Six's stranglehold on the market and energy we can all afford."

ENDS

Notes to editors:

1.            More information on Friends of the Earth's Final Demand campaign, calling for a public inquiry into the Big Six energy companies and a fair energy system, can be found at www.foe.co.uk/finaldemand.

2.            The solar feed-tariff has been more popular than expected, with domestic generation accounting for most FITs payments. Since the start of the scheme there have been 80,000 new solar projects.

3.            There are now around 25,000 jobs in solar power (increase of 22,000 since start of FITs scheme).

4.            Tariff rates were always going to be reduced from April next year, but with the Government currently tightening its belt, there has been widespread speculation that solar funding could be slashed by as much as 75 per cent.

5.            Friends of the Earth says payments to people generating their own solar power should only be cut in line with falling costs of solar technology - while overall ambition for the feed-in tariff scheme should be increased, to allow more people to participate and protect jobs.

6.            Friends of the Earth research shows that a green energy revolution is needed to stabilise energy bills in the long run.

If you're a journalist looking for press information please contact the Friends of the Earth media team on 020 7566 1649.

Published by Friends of the Earth Trust