UK solar panel subsidies slashed 65%

The government has slashed subsidies for householders installing solar panels by 65%, days after reaching an agreement in Paris to move to a low-carbon energy future.

Subsidies will be cut from 12.47p per kilowatt hour to 4.39p from January 2016.

However it’s an increase from the original proposed subsidy cut to 1.63p per kilowatt hour.

In the final report from the Department of Energy & Climate Change, it said the tariffs were revised based on evidence received during the consultation process.

“In determining these tariffs, the government believes that the level of incentive offered reflects the cost of deployment whilst remaining within the boundaries of EU State Aid approval.”

Secretary of State for Energy and Climate Change Amber Rudd said the balance has to be right.

“My priority is to ensure energy bills for hardworking families and businesses are kept as low as possible whilst ensuring there is a sensible level of support for low carbon technologies that represent value for money,” she said.

“I am clear that subsidies should be temporary, not part of a permanent business model.

“When the cost of technologies come down, so should the consumer-funded support.”