U.K. Solar Capacity Surge Defies Huhne's Plan to Curb Subsidy

[kristopher]

U.K. Solar Capacity Surge Defies Huhne's Plan to Curb Subsidy

Jan. 12 (Bloomberg) -- Britain's solar capacity shot up 10-fold last year, defying Energy Secretary Chris Huhne's effort to roll back subsidies for the industry and prevent the sort of booms experienced in Germany and Italy.

Solar panels with at least 761.9 megawatts in capacity were installed in 2011 compared with 76.8 megawatts the prior year, according to figures on the website of U.K.'s energy regulator Ofgem. About two-thirds of the capacity and 95 percent of the projects were installed on homes.

Huhne twice last year moved to rein in support granted in April 2010 in the form of feed-in tariffs, which guarantee premium rates for electricity from solar power. Companies including EON AG, Tesco Plc and Carillion Plc's Eaga rushed to tap the market, supported by fund managers such as Foresight Group LLP and Octopus Investments Ltd.

“It's been a very busy and successful year for the solar industry,” Howard Johns, chairman of the Solar Trade Association and managing director of installer Southern Solar Ltd., said by e-mail today. “But now most of the industry is at a standstill with the uncertainty caused by the government.”

The price of panels today ...

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