The government is currently considering the introduction of a 'capacity trigger' system as a means of reducing subsidies for solar PV while simultaneously spreading the amount of money available over more installations. The DECC is expected to present the idea, which is supported by both Chris Huhne and Greg Barker, in a consultation document before the end of the year. The new subsidy system may follow that introduced in Germany where subsidies for solar PV installations are reduced according to the generation capacity of each installation. It works by adding an overall reduction of the tariff, calculated at 9 percent, to an amount relative to the type of installation.
The idea follows the publication of a report by investment bankers Deutsche Bank looking at how solar PV panels can be designed to achieve rapid growth while limiting the amount paid by taxpayers. The Renewable Energy Association is supportive of the idea on the basis that if the price of solar PV doesn't continue to fall, the new system could help. However according to critics the new idea suffers from the disadvantage that the installation of many separate systems costs more than the installation of fewer larger systems and therefore the money available will support less, rather than more, installation capacity.