My problem with the Governments quick fix attitude to FIT's eaten away by increased profits due to falling PV prices is?
What happens when they fall again or worse still go the other way?
Impact of Solar PV Feed-in Tariff Changes | Cambridge Modelling
"Large fluctuations in the price of poly silicon in the past year (by more than 50%) have impacted significantly on solar PV module costs. In recent months, this trend has been favourable with technical improvements and reduced global demand leading to a general reduction in module prices. However, the sensitivity of poly silicon and PV module prices to market demand means that their contribution to recent large reductions in the cost of solar PV installations is subject to change. This has been illustrated in recent years where spikes in solar PV demand have caused temporary retardations in industry learning rates and significantly increased module costs 6.
Therefore, a longer-term view of solar PV cost reduction trends is required to
avoid aberrations produced by short-term fluctuations in global demand. The
amount by which FITs are periodically reduced needs to be based on long-term
trends (over a period of years) in solar PV installation costs to overcome short-term inconsistencies produced by temporary fluctuations in poly silicon and solar PV module prices. This recommendation is particularly relevant in the
context of the consultation on the Comprehensive Review and is worthy of
further consideration in this and later rounds of tariff reductions."