Yesterday the Governement suggested plans to cut the solar Feed-In-Tariff (FIT. One green energy company is predicting 'Armageddon' for the solar industry.

Minister Greg Baker announced a new FIT rate of 21p/kWh suggesting the cost of solar panels will drop to a point which makes the new rate feasible. Plans for a 'dynamic' subsidy rate are recieving critiscm as they will allow the Governement to reguarly reduce the FIT rate in line with lowering solar panel costs.

Eco Environments Managing Director, Dave Hunt, said: "A reduction to a tariff as low as 13.6p in justa few months is the equivalent of armageddon for the solar industry. There is simply no way that product and installation costs will drop that much in such a short period of time to make such a low tariff rate economically viable." (www.energylivenews.com, 10/02/12)