NFU Scotland has written to the Department of Energy and Climate Change (DECC) voicing concerns about proposed cuts to Feed in Tariffs (FITs).
In a letter to DECC, NFU Scotland President Allan Bowie expressed his concern that a drastic cut, up to 87 per cent of current FIT rates, could have a damaging impact for NFU Scotland members looking to diversify. FITs are the government’s subsidy scheme for the generation of renewable electricity from small-scale installations.
Mr Bowie also raised reservations about previous proposals by DECC surrounding the removal of the requirement for pre-registration to the scheme, resulting in farmers considering investing not being able to do so with any knowledge about what income to expect. It could have an impact on the confidence of farmers to invest in renewables projects.
Mr Bowie also explained that it could introduce yet another layer of uncertainty at a time when Scottish agriculture is affected by price volatility and poor weather.
Drastic cuts to the FIT scheme could have damaging effects on the renewables industry, and combined with the issue outlined above, will further compound issues for NFUS members.
NFUS President Allan Bowie commented: “Small scale wind and solar developments have been a traditional form of diversification for NFUS members, and I question how the proposals contained within the consultation will affect government targets with regards to climate change.
“The Union will be meeting with key stakeholder organisations in due course and will submit a robust response to the consultation, closing on 23 October. However, it also encourages its members to make their own responses to this consultation.
“I am extremely concerned at the proposals relating to FITs. Many NFU Scotland members have diversified into renewable energy, as a means of reducing their exposure to the volatilities of agricultural incomes.
“Severe cuts in FITS will kneecap on farm renewables in Scotland, and without doubt have a serious impact on delivery of the renewable energy targets set by Scottish Government.
“NFU Scotland will be responding robustly on behalf of its members, and also urges individuals to make their own representations directly to DECC.”
