Fast FiTs reduction could cost UK £750m in new green technology
Published: 07 June, 2011
HEMEL HEMPSTEAD: Oxford Sustainable Group, a £2.2bn (gross development value) renewable energy and sustainable development business has estimated the cost of the reduction in Feed-in Tariffs (FiTs) to the UK economy.
While the cuts to the FiTs will save utility companies millions in reduced subsidy payments, based on an expected reduction in solar projects which will now not be funded, the Oxford Sustainable Group estimates the loss to the overall economy could be around £750m in inward investment for new green technology.
The Oxford Sustainable Group is an experienced developer and investor in the UK solar market having founded ISIS Solar – the leading UK solar brand for domestic solar, and more recently Sol et Libre – the UK’s only second generation solar company aims to give domestic customers on the south coast of England free solar plus a cash incentive.
“The change in FiTs does not affect us, but it does seem unusual that just a few months after British Gas announced a 24% rise in profits from its trade in fossil fuels, the UK decides to create uncertainty for investors in clean energy,” said Hadley Barrett, CEO of the Oxford Sustainable Group.
“With the correct policies, the UK has a unique chance to lead Europe in sustainability and energy. This is a key industry for the coming decade, but currently the UK is lagging behind. Unfortunately, the sentiment amongst our investors following the policy review is that there are more stable opportunities outside of the UK right now.
“Having provided input to various governments and private companies in Europe regarding sustainability, we are also happy to provide practical and unbiased industry advice to the new coalition Government on this subject.”