Farmers are being hit by the UK government’s plans to cut support for small scale renewable energy at a time when they are already suffering from low commodity prices.
The feed-in tariff currently supports renewable developments below 5MW, which can be used to power machinery and property on a farm or small business.
A government review of the FiT scheme is considering reducing the amount of money paid to people who generate their own green energy.
A consultation on the plans ends tomorrow and submissions by Scottish Renewables, the National Farmers Union Scotland and turbine manufacturer Gaia-Wind have condemned the proposals.
NFU Scotland legal and technical policy manager Gemma Thomson said the proposed FiT changes would “severely limit” the number of on-farm renewable schemes in future.
“These proposals will end many on-farm renewable plans, and severely limit the number of new projects that will come forward in the future.
“The knock-on effect for farm businesses will be that a previously viable way of dividing risk and reducing exposure to price volatility will no longer be an option.”
Gaia-Wind chief executive officer Johnnie Andringa said: “Farm-scale wind – a sector with a substantial, if shrinking, base of British manufacturers – is becoming a core element of the rural economy as farmers seek to diversify from dwindling traditional income streams.
“The changes to the FiT, however, mean we could now see more company failures and job losses as a direct consequence of government policy.”
Scottish Renewables policy manager Stephanie Clark said: “Reductions in support for small-scale renewables provided through the FiT will hit rural businesses particularly hard, coming as they would on top of well-publicised low prices, particularly in the dairy industry.”
Image: Wikimedia Commons
Farmers to suffer from tight FiT
Subsidy cuts to small-scale renewables will end many farm projects
By EBS