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Feed in Tariff payment changes would make social housing projects 'un-investable'

7 Nov 11 - 11:09AM  | IT |  Social Care/Work

Social housing schemes are going to be the hardest hit by the government's changes to the Feed in Tariff payments, according to one expert.

Proposals announced this last week would see the average income from solar-powered energy fall from £1,100 to around £500 as payments are cut from 43.3p per kWh to 21p.

Furthermore, this is set to lead to a reduction in social housing projects as, greenbuildingpress.co.uk says, new programmes would become "un-investable".

Speaking to the news provider about the government plans, Empower Community managing partner Alex Grayson said that a reduction in payment will lead to severe consequences.

"Investor confidence in these policy-backed emergent asset classes will undoubtedly be shaken, with very negative consequences for RHI (Renewable Heat Incentive) and Green Deal investments," he said.

"Where else are we going to find the hundreds of billions of pounds of investment we know we need in our energy infrastructure and efficiency measures if not the pension funds?"

Meanwhile, Nick Bennett - chief executive of Community Housing Cymru - said last week that costs in the NHS would fall if social housing was improved.

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