UK Warned Against Cutting Incentives

UK Warned Against Cutting Incentives

In April last year, the British government put in place incentives for the solar power industry to start building solar panels and for the introduction of solar panels to old and new buildings and structures. Many companies and invested decided to take these incentives up (Also know as feed-in tariffs.), which helped to cause growth and a massive boom in the fledgling solar industry in the U.K. The offer was for a high rate given to megawatts per hour for solar electricity over the traditionally used fossil-fired fuels.

At the present, the coalition, which has the power in the U.K, is looking at changing these incentives, seeing whether to the expectations have been exceeded. It is a possibility that if expectations have out performed initial outlook, the incentives will be taken away. Canadian Solar, based in Canada (But doing a lot of production work in China.), has warned the U.K. government against removing these incentives after the massive growth of 2010. Canadian Solar is looking at finding their feet in the U.K. solar market, on the back of the current incentives on offer.

The investments made in this area, as well as the number of those employed helped the U.K. out, as currently there are problems with mass unemployment. The new solar industry has the ability for mass growth, which could see more employment in that sector. This is a good thing for the U.K, due to the money coming in as well as job growth.

Another company looking to get involved in the U.K. solar market is the German company Conergy. However, due to the possible changes to incentives, they are reconsidering their move. Germany is currently one of the largest producers of solar energy, a giant feat considering they amount of sunlight they get each year, when compared to countries like Israel and Australia.

While these incentives were never designed to be permanent. It is hoped by many companies these incentives continue for the next few years, to be able to keep the growth in this area moving forwards. The loss of incentives may mean the industry a decline at a time when green power is needed.

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