How immoral?
Oct 20, 2011
Bishop Hill in Economics, Energy: solar, Energy: wind

The government is apparently going to consider cuts in subsidies to solar panel installations. Apparently wind power is going to be targeted too.

Intense discussions are taking place about precisely how far to cut the small-scale solar “feed-in tariff” (FiT) which pays households and companies for energy produced.

Some officials in the Department of Energy and Climate Change are calling for a reduction in the subsidy by three-quarters, according to industry sources.

That would mean a fall from the current level of up to 43p per kilowatt hour generated, to as little as 9p per kWh – a move which the industry claims would be devastating. If the government follows past precedent, any change would not affect homeowners with existing solar panels.

So the lucky few wealthy people will continue to be subsidised by the poor. It's just a matter of how much immorality the government decides to retain in the system.

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