Greg Barker Minister of State for DECC has just announced its plans to put the Feed-in Tariffs (FITs) scheme on a more predictable, certain and sustainable footing for householders, businesses and the solar industry.
Ministerial Statement in the House of Commons at 12:28 pm.
“Today starts a new and exciting chapter for the solar industry. The sector has been through a difficult time, adjusting to the reality of sharply falling costs, but the reforms we are introducing today provide a strong, sustainable foundation for growth for the solar sector. We can now look with confidence to a future for solar which will see it go from a small cottage industry, anticipated under the previous scheme, to playing a significant part in Britain's clean energy economy. I want to send a very clear message today. UK solar continues to be an attractive proposition for many consumers considering microgeneration technologies and that having placed the subsidy support for this technology on a long-term, sustainable footing, industry can plan for growth with confidence. Following detailed consultation with industry and consumers, the Government is introducing a range of changes to the FITs scheme with effect from 1 August to provide better value for money and allow businesses and householders to plan with confidence. This is good news for the industry and for consumers and will ensure that as many people as possible benefit.
Today’s announcement at a glance:
Tariffs for solar PV installations to be reduced from 1 August:
- 16p/kWh for household scale solar PV installations to reflect fall in cost of the technology, delivering a return of about 6% for a typical installation.
- Tariffs for larger installations also to be reduced to reflect cost reductions but with most tariff cuts lower than proposed in February.
- Reductions to apply to new installations from 1 August, instead of 1 July as proposed, in recognition of low uptake from 1 April and providing time for industry to adapt.
- Organisations with more than 25 solar PV installations will get 90% of the standard applicable tariff, increased from 80%, reflecting new evidence on costs involved for these projects.
- Ensuring solar PV is not over subsidised.
- Average tariff reductions of 3.5% every 3 months, reductions will be bigger (up to 28%) if there is rapid uptake.
- Tariff cuts will be skipped (for up to 2 quarters) if uptake is low.
- Uptake in 3 different bands (domestic (size 0-10kW), small commercial (10-50kW) and large commercial (above 50kW and standalone installations) will determine the quarterly reductions within those bands.
- To better reflect the real value of electricity exported to the grid.
RPI index-linking of generation tariffs to be retained
- Reflecting the high value investors place on this element of the FITs scheme.
- Reducing the lifetime costs of the scheme and bring solar in line with most other technologies supported under FITs.
- Ensuring energy efficiency is still encouraged as tariffs are reduced.
News Flash: UK Feed in Tariff cuts delayed by DECC!
Sources from the BPVA have today indicated that the DECC (Department of Energy and Climate Change) plan to delay the latest round of feed-in tariff cuts scheduled for July 2012.
This announcement would be very positive news for the currently struggling and depleted UK Solar sector, and will prolong any possible opportunity for the public to financially benefit from the installation of solar panels to reduce their energy bills!
According to our sources Greg Barker MP Minister for DECC has confirmed, “Having listened carefully to industry, we are looking at scope for pushing back a little the next proposed reduction in the solar Feed in Tariff”. The DECC has also confirmed that an official announcement on this will be published shortly along with the results of the feed-in tariff consultation phase 2A.
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