Thursday, 22 December 2011
UK Solar Tariff mess
One is here about the hand-wringing around solar energy tariffs. The Government has made a sensible decision to hugely reduce the subsidy to the industry which is not economic without it, even with massive Chinese dumping of excess solar panels on the markets. Put simply, there is not enough sun in the UK and the installation costs outweigh benefits on balance.
Across Europe, subsidies have been slashed during these touch economic times. Yet Politicians always grapple with the basic fundamental issues. The Committee reviewing this decision agrees the Government is right to reduce the subsidy but then cannot understand that this will lead to job losses and so wants things done more slowly.
Of course, this it the basic point, excess subsidy builds up an industry at huge taxpayer cost. One this is reversed the industry has to shrink to get back the savings for the taxpayer - this means job losses too. After all, the industry only grew through artificial stimulus.
Why is it that politicians can never get these simple points? Not that the BBC help with their over-done headlines as per usual.