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Feed-in Tariff Review
Posted by Ewan McClymont on 11/7/2011
The Department for Energy & Climate Change (DECC) has recently published the results of its comprehensive review of the Feed-in Tariff. Wind and Anaerobic Digestion (AD) rates remain unaffected but under the proposed changes, Solar PV tariffs for installations up to 250kW will be substantially reduced. In addition, the proposed implementation date has been brought forward from 31st March 2012 to 12th December 2011, creating confusion for both customers and supply chain installers.
Installations completed and registered on or after the 12th December 2011 will receive the current rates until the 31st March 2012 and will then be subject to the new reduced rates from 1st April 2012. There are likely to be conditions attached for new applicants receiving the tariff after 1st April such as achieving an Energy Performance Certificate (EPC) level rating of C or above.
In addition, the consultation proposes changes for multi-site schemes, which would further reduce rates for single sites owned by an individual or organisation. The review will also consider whether more can be done to help genuine community projects to benefit fully from FITs.
The eligibility date of a project will be based on it being commissioned by the installer and in working order, and having its written request for accreditation received by a FIT licensee / supplier (energy company for schemes up to 50kW) or Ofgem (for schemes above 50kW).
The proposed new Solar PV tariff rates are as follows.
|
Band - kW
|
Current Generation Tariff - p/kWh
|
Proposed Generation Tariff - p/kWh
|
|
< 4kW (new build)
|
37.8p
|
21p
|
|
< 4kW (retrofit)
|
43.3p
|
21p
|
|
> 4-10kW
|
37.8p
|
16.8p
|
|
> 10-50kW
|
32.9p
|
15.2p
|
|
> 50-100kW
|
19p
|
12.9p
|
|
> 100-150kW
|
19p
|
12.9p
|
|
> 150-250kW
|
15p
|
12.9p
|
|
> 250kW-5MW
|
8.5p
|
8.5p
|
|
Stand Alone
|
8.5p
|
8.5p
|
According to DECC, the proposed new tariffs are designed to give an average rate of return of 4.5% to 5.0%. All tariffs will be adjusted in line with the Retail price Index from 1st April 2012.
Both Regen South West and the Solar Trade Association are leading an active lobbying campaign as a result of the proposed changes in the review. Details can be found at http://www.regensw.co.uk and http://www.oursolarfuture.org.uk.
All information correct at time of posting.