NEWS
Future of the feed-in-tariff
9/2/2012
The Government has today released details of the feed-in-tariff (FiT) consultation and set new proposals for the FiT scheme that could see incentives cut for domestic-scale solar PV installations to 13.5p kWh by July 2012.
From the April 1st the rate paid will be 21p however it will become compulsory for domestic installations to have an EPC level D before they can claim the feed-in-tariff. This is lower than the rumoured EPC level C and simple improvements such as loft insulation could help homes reach the required EPC level.The scheme will also be reduced from 25 years, to a 20 year payment plan.
The DECC has also proposed a three-part cost control mechanism that includes an automatic reduction of 10 per cent every six months, in April and October each year. With an added "contingency trigger" allowing the government to impose additional cuts at two months' notice if they are concerned the scheme is at risk of exceeding its budget.
This could mean that by October 2012, the feed in tariff rate for systems below 4kW could drop to as low as 12.9p/kWh.
Unfortunately, the consultation provides no certainty of the rates between 12th December 2011 and March 3rd 2012 however the Government have been given until 21st February 2012 to lodge their appeal to the Supreme Court.
The government hopes these cuts will bring down the cost of solar PV installations, making them more affordable, and ensuring the feed-in-tariff is still an investable option.
“I want to see a bright and vibrant future for small scale renewables in the UK,” said Barker, “and allow each of the technologies to reach their potential where they can get a point where they can stand on their own two feet without the need for subsidy sooner rather than later.”
