Giving investors the shine

It’s not too often that you see the CBI and Friends of the Earth on the same page but both have slammed the ConDem government’s plan to halve the subsidies for household solar electricity by next month.

The scheme enables properties in the UK with solar panels to earn income from electricity they generate. However the fast growing installation industry is now under threat as ministers attempt to halve "feed-in tariffs". The move will force companies to cancel planned work destroying projects and jobs say critics.

Government officials claim the changes in payment levels would make the scheme more sustainable and able to thrive in future.

FoE describe the move as “misguided” and “a further backward step for the coalition’s faltering green agenda”.

CBI director general, Jonathan Cridland was equally forthright:

"Moving the goal posts doesn't just destroy projects and jobs, it creates a mood of uncertainty that puts off investors and they wonder what's coming next.

"Some companies have invested heavily in solar photovoltaic systems and in the supply chains needed to install them.

"That commitment has been undermined by the feed-in tariff decision - and so industry trust and confidence in the government has evaporated. This bodes poorly for investment in future initiatives."

Wonder what Ms Parrott has to say about this one.