Chris Huhne Wants to Cut Subsidies for Green Electricity

Apparently Chris Huhne, who is the energy secretary, has been told that reducing funding for household generation of renewable energy will jeopardize job creation and energy security. However, he wants to cut subsidies for green electricity.

Green housing and countryside groups have now warned the energy secretary not to cut subsidies from green electricity and heating as part of the government’s spending review. These 22 groups, which includes green energy trade body the Renewable Energy Association and the National Farmers Union, said in a letter to Huhne that cutting these schemes would jeopardize job creation, energy security and greenhouse gas targets.

This move was sparked by comments from the Department of Energy and Climate Change minister, Charles Hendry, who said that he was about to closely review the £27 billion renewable heat incentive scheme due to start up next April to encourage the take up of green heating.

Hendry went on to say that they have inherited a situation where they could see who was about to benefit commercially. However they could not really see who it was going to be paid for and that it would create pretty substantial bills.

The rate paid for the feed in tariff is currently due to be reviewed in 2012. It’s introduction has caused a solar gold rush in the UK. A record number of households all over the UK are buying up solar panels in order to take advantage of the feed in tariff. However, this kind of talk is going to scare, not only people who have already paid for these kinds of panels, but people who are thinking about getting them. This could really hurt the number of people that choose to make the switch.