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06th March 2012

FiT Review Summary

On 9th February the Department of Energy and Climate Change issued its latest consultation following a review of the Feed-in Tariff Scheme for renewable energy.

On 9th February the Department of Energy and Climate Change issued its latest consultation following a review of the Feed-in Tariff Scheme for renewable energy. The closing date for responses to the consultation is 3 April for Solar PV and 26 April for all other forms of renewable energy. The main proposed changes to the Feed-in Tariffs are as follows:

Solar PV

The rates for Solar PV would reduce significantly with effect from 1 July 2012. Three alternative table of rates have been proposed depending on the quantity of new capacity installed during March and April of this year. The higher the level of new capacity installed then the greater the reduction in the rates.

The rates would be subject to regression in October 2012 and every six months thereafter, or sooner depending on the level of actual deployment of the technology.

The period of the Feed-in Tariff would reduce from 25 to 20 years.

Other Forms of Renewable Energy

No significant changes are proposed to the rates for hydro and anaerobic digestion other than some minor reductions for small hydro schemes and large anaerobic digestion schemes. The rates for wind are however reduced quite significantly. All reductions take effect from October 2012.

  • All of these rates will be subject to regression from April 2014 and every year thereafter or earlier depending upon the level of actual deployment.
  • The period of the Feed-in Tariff will remain at 20 years.

All Forms of Renewable Energy

  • The consultation also includes the question as to whether the Feed-in Tariffs should continue to be index-linked or whether they should revert to a flat tariff. If index-linking is to remain then the question has also been raised as to whether this should be calculated by reference to CPI rather than RPI.
  • The Department are also looking at the current export tariff of 3.1p per kWh to see whether this should be adjusted. If it is increased then this may result in a further corresponding reduction in the Feed-in Tariff. Any adjustment however to the export tariff would only apply to new installations.

For further information please contact Gareth Williams on 01604 233233

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