Argument over solar subsidies in the UK
The UK, as with the rest of the world, has seen a dramatic surge in solar power generation over the past few years. the cost of solar panels has dropped quickly and governments have subsidized the industry. Now governments are considering cutting these subsidies because solar is beginning to be competitive with fossil fuels. I would agree with this action if governments would also cut the subsidies they have been giving to fossil fuel companies since the inception of that industry.
Fossil fuel companies have never had to pay the cost of the environmental damage they do when extracting or burning their products. Neither have fossil fuel companies had to pay for the damage to human health caused by their products. Paying these costs would make sustainable energy sources more than competitive and that’s why the fossil fuel industry contributes so much to political campaigns around the world. Consumer prices would go up for fossil fuel energy but come down for sustainable sources and that would bring a cleaner world sooner rather than later.
In terms of UK solar I would say the feed in tariff cuts for small scale solar (eg building mounted) are suitable and the new way in which cuts are relative to install rates are suitable. This is shown by install rates being very constant, indicating that the feed in tariff cuts correspond well to install cost reductions.
The major issue at the moment is that the subsidy cuts for large scale solar that were effective from 1st April have been too extreme. Previously such projects were getting 1.4 ROCs/MWh which was probably too generous following capex falls, hence the large number of solar farms appearing over the last year or so. However, they now have to compete for Contracts for Difference (CFDs) against onshore wind projects which is something solar is unable to do until further capex reductions occur.