The government’s decision to cut funding for solar power in the way of reduced Feed-in tariff rates, has meant many projects have been put on hold or scrapped entirely. This decision from the Coalition could cut 29,000 jobs and damage the solar industry for the foreseeable future.

A project in Hastings to install solar panels on 1,439 homes has been scrapped because of the Feed-in tariff (FiT) reductions, and means tenants will miss out on £190 energy savings every year. The FiT rates for solar PV have been cut by more than 50%, from 43.3p/kWh to 21p.

The solar industry remains in a cloud of uncertainty though as solar companies and environmental groups launched a legal challenge against the government’s decision. The High Court backed the case, calling the cuts “unlawful.” However, the government continues to suggest the cuts were needed to preserve the FiT for as long as possible after many homeowners took advantage of the scheme.

Before the announcement in October, the FiT rates for all renewable energy products were ready to be reduced next April. This includes the also popular wind turbines and heat pumps for free electricity generation.

Andy Atkins, executive director of environmental group Friends of the Earth, says: “These botched and illegal plans have cast a huge shadow over the solar industry, jeopardising thousands of jobs. Ministers must now come up with a sensible plan that protects the UK’s solar industry.”

AmicusHorizon were the company ready to install solar panels on Hastings homes and spokesman Stephen Gillett said “Our project would have reduced household bills by £190 a year. This decision will have a massive impact on our residents and we’re developing other initiatives to help reduce fuel bills and carbon emissions.

“Following the outcome of the appeal we’ll re-assess the viability of our solar panel projects and will look for other ways for residents to make energy savings.”

Despite the cuts to solar PV, renewable energy is still a worthwhile investment for the long-term reduction of your energy bills. Solar panels will last for 25 years and more, generating free electricity and cutting your carbon emissions. In a time when everyone is looking to reduce household bills, you need look no further than renewables.