Even cutting the solar FIT in half would almost certainly leave it a very profitable investment, more than profitable enough to sustain a good growth curve that would enable constantly lowered cost of production which enables moving the FIT down gradually year-to-year.
Thus, perhaps, cut the FIT in half and reduce it by 1 Euro Cent / kWh or so each year for new installations. Blogging regularly at Get Energy Smart. NOW!!!
In actuality, the Spanish FIT for PV was already recuced more than a year ago, leading to a brutal bust in 2009. What you propose, an immediate slashing by half, would amount to a similar bust. To keep the market (and factories' steady output) alive, a more orderly reduction would be okay, say -10-15% each year or half-year. For planning security, it would be best if these degressions are known in advance for at least a year; but the Spanish FIT rates are re-set each year. *Lunatic*, n. One whose delusions are out of fashion.
We're agreed that a planned & well-announced long-term program of gradual FIT reductions is a better path forward. Blogging regularly at Get Energy Smart. NOW!!!
I beginning to think that I shouldn't have calculated those rates for rough comparison, because people are taking them as absolute rates for electric production...... And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg
