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Solar PV Feed in Tariff Rate Changes 1st August 2012

The significant changes to the Feed in Tariff scheme and rates for solar PV that will take effect today 1st August 2012 are summarised below:

  • The tariff for domestic installations will be set at 16p;
  • the export tariff will be increased from 3.2p to 4.4p;
  • the RPI link will be maintained;
  • the Feed in Tariff lifetime has been reduced from 25 years to 20 years for new installations;
  • the multi installation tariff will be set at 90% of the standard generation tariff (rather than 80% at the moment);
  • the mandatory FiT Licensees' threshold has been increased from 50,000 customers to 250,000 customers.

To assist us REAL have updated their Consumer Guidance on the Feed in Tariff scheme.  You can find it here www.realassurance.org.uk/consumers/feed-in-tariffs

A more detailed summary can be found in DECC's consultation response: www.decc.gov.uk/assets/decc/11/meeting-energy-demand/renewable-energy/5386-government-response-to-consultation-on-comprehensi.pdf

DECC also published FAQ's on the website here: www.decc.gov.uk/content/cms/meeting_energy/renewable_ener/feedin_tariff/fits_fags/fit_fags.aspx

 The Government consultation response also set out the cost reduction mechanism that will govern the way Feed-in-Tariff rates can be changed in the future.

  • Tariff rate changes are scheduled to take place every 3 months - January, April, July and October each year;
  • The tariff rate changes will be determined by the volume of the deployment in the specified 3 month period;
  • the tariff rate changes will be announced 1 month following the period in question and implemented 2 months later;
  • if the threshold is breached a tariff rate reduction (from 3.5% - 28%, subject to deployment) will be announced at the end of the following month, and come into effect two months later;
  • If deployment trigger is not reached, then no tariff rate reduction will take place;
  • Two successive quarters without a tariff rate reduction will be followed by a guaranteed tariff rate reduction of minimum 3.5% in third quarter.
  • There are three different digression bands
    • domestic (0 - 10kWp)
    • small commercial (10 - 50kWp)
    • large commercial (over 50kWp and stand alone)
    • (The tariff rate degression in each band is not linked to deployment rates in other bands.)

Non PV technologies

The Government also consulted on the future of the Feed in Tariff scheme for non-solar PV systems supported under the FiT Scheme (Phase 2B Consultation) on 9th February 2012.  The Government published its decisions on 20th July 2012.  Theses decisions are due to come into force on 1st December 2012, but they have not be laid before parliament yet.  They include new rules for community solar PV installations.  You can find more details here:

www.decc.gov.uk/en/content/cms/meeting_energy/Renewable_ener/feedin_tariff/feein_tariff.aspx

If you have any queries about the above please do not hesitate to get in contact with us on 0191 2952900 or

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