HOMEOWNERS who opted to save money by installing solar panels could soon find their investment is not quite the earner they expected it to be.
The Government has put proposals out for consultation which could see subsidies for household solar electricity halved. The idea is to cut the feed-in tariff (FIT) for solar power which was introduced 18 months ago and has become a great success.
And it is that success that has made the Government nervous because the subsidy is paid not from the Treasury but by a levy on household electricity bills.
In tough economic times and with fuel bills ever on the increase, that perhaps makes the tariff a sensitive subject.
Ministers say the cut is necessary to make small-scale renewable subsidies sustainable.
Those in the solar industry are understandably concerned about the effect such cuts could have on businesses and jobs. After all, if installing solar becomes less of an attractive proposition from an income generation stand-point, fewer people might be willing to invest.
And there’s the issue that is key to this decision. If the Government is to live up to its green credentials, making solar power less attractive to homeowners is surely not the way to do it.