The cut to FITs has destroyed investor confidence in the government, argued CBI director-general John Cridland
The Confederation of British Industry has attacked the government’s plans to cut the feed-in tariff for solar power as “the latest in a string of government own goals” that have destroyed industry confidence.
Last week the government announced plans to slash the tariff that home owners who install solar panels are paid for feeding their surplus electricity into the national grid from 43p per kWh to 21p per kWh from 12 December the year.
The announcement was met with widespread dismay as solar panel fitters argued it would put them out of business by killing demand.
Energy minister Greg Barker argued the cut was necessary to bring spending on the tariff under control as it had proved much more popular than expected.
John Cridland, CBI director-general, said: “”This is the latest in a string of government own goals, following the Carbon Reduction Commitment becoming a pure revenue-raiser and the North Sea oil and gas tax.
“As you all know, moving the goal posts doesn’t just destroy projects and jobs, it creates a mood of uncertainty that puts off investors and they wonder what’s coming next,” he said.
Cridland said all faith in the government plans for the industry has evaporated.