WITHOUT any warning, the solar bombshell was dropped on Monday morning, breaking the news that the Government is proposing to cut by half the Feed In Tariffs (FIT) offered for solar PV installations.

First I will give you the bleak facts as set out in the consultation document:

• The Government has been surprised by the success of the Feed In Tariff scheme announced last year. From a standing start, about 100,000 homes have been fitted with solar panels, which should have been brilliant news if it wasn’t for the sheer volume now threatening the funding that is available for the scheme. The FITs were too generous and drastic action is being taken.

• For the purposes of this article I am only dealing with installations that have a capacity of delivering up to 50kw, and for these the FIT is being reduced by about 50 per cent. For example, most residential installations will be in the 4kw band where the FIT was 43p per kw hour and will drop to 21p per kw hour.

Installations between 4kw and 10kw will drop from 37.8p to 16.8p; and for installations 10kw to 50kw the reduction is from 32.9p to 15.2p.

• The real problem comes with the Government’s proposed timetable for introducing the new tariffs. Up until now the indication had been that new rates would be introduced as from April 1, 2012, and the industry generally expected a cut of about 30 per cent which would equate to the falling cost of putting in the equipment. The industry had assumed that any installations carried out before next April would benefit from the existing FITs but the Government has other ideas.

The proposal is that the new generation tariffs will apply to all installations with an “eligibility date” on or after December 12, 2011, which is less than six weeks away. The “eligibility date” is the later of the following: the date the Electricity Board receives a proper-written application, or the date on which the installation is actually commissioned. There is a very small concession in that those installations commissioned between December 12 and April 1 will get the old tariff rate up until that date, but thereafter will move on to the new tariffs.

As ever, there are two sides to every consultation, and the Climate Change Minister, Greg Barker, has made it clear that he has no option but to act to stay within budget.

On the other hand, all those firms that have geared up to supplying the demand have denounced the proposals as decimating the solar industry; and you can understand their anger.

Across the country, lots of small firms will have taken on staff, bought equipment and generally invested in this growth industry on the back of Government promises that FITs remain constant until next April. They will justifiably feel let down as I am sure will a lot of property owners who have likewise put time and capital aside to get their solar PV installation up and running.

Some of the schemes larger than those of householders will have had to pay for expensive planning applications which could now be wasted.

I accept there is a dilemma, but I do think it is not honourable for the Government to try to retrospectively cut the funding for a very laudable scheme to reduce our carbon footprint.

FWAG to go into administration

It was in 1969 that a group of farmers concerned about the loss of habitat and wildlife got together and formed the Farming and Wildlife Advisory Group, and I was pleased to be one of its early supporters.

Therefore with great sadness I have to report that the national FWAG organisation is destined to go into administration brought on by the Government’s funding cuts last autumn and a downturn in stewardship applications. This is a sad day and I just hope that the core activities might somehow be salvaged.

I was encouraged to receive a swift email from Nick Ramsden, chairman of the North Yorkshire FWAG, who has declared that our country operation will continue to fight on. He closes with a message that ‘with every challenge comes an opportunity and the Yorkshire Committee fully intend to rise to this challenge.’

ELS major upgrade in December

Natural England has confirmed that there will be a major software upgrade to the ELS Online and this is scheduled for the weekend of December 10-11. Anyone in the process of applying on the system needs to know that their application will be lost when the new software version is downloaded. Please ensure that your applications are submitted before Friday, December 9. As with every piece of Government software, the message is to tread warily and do not, for heaven’s sake, rely on it.

Market report

Forward 65 cattle including six bulls and 20 OTMs 848 sheep including 140 ewes heavy steers to 224.5p, D W Mook, Sheriff Hutton, ave 190.85p; heavy bulls to 200.5p, D W Mook, Sheriff Hutton, ave 195.95p; heavy heifers to 233.5p, J and R Waind, Brawby, ave 201.3p; cows to 159.5p, J F and S E Goodwill, Hovingham, ave 120.5p; medium lambs to 189p, T Hardisty, Conesthorpe, ave 178.5p; standard lambs to 181p, D M Holmes, Lockton, ave 171.6p; heavy lambs to 176p, Wilson and Kellett, Ryton, ave 158.5p; overweight lambs to 149p, P Cass, Scalby, ave 139.5p; ewes to £106, I and S Davison and Son, Lebberston, ave £75.