Feed-in Tariffs: Proposals for change announced as part of scheme review

 

The Department of Energy and Climate Change has announced proposals for changes to Feed-in Tariffs (FiTs) and invited contributions of evidence on the proposals as part of a public consultation. 

18 March 2011

The Department of Energy and Climate Change (DECC) has announced new proposals as part of the ongoing review of the Feed-in Tariff scheme. The proposals are aimed at reducing the financial support available to large scale solar projects with the aim of protecting that funding for home, community and small business projects. Speaking about the announcement Minister for Energy and Climate Change the Rt. Hon Greg Barker said, “These proposals aim to rebalance the scheme and put a stop to the threat of larger-scale solar soaking up the cash. The FITs scheme was never designed to be a profit generator for big business and financiers”. The proposals put forward still entail a level of support for all solar PV, only the review suggests introducing lower rates for the higher brackets than would other wise come into effect from 1 April. The largest cut in tariff would be for those PV instillations over 250kW who could see up to a 72% reduction in the tariff level received per kWh. The proposals also include plans to increase the tariff to farm-scale anaerobic digestion by up to 15.7% for up to 250 kW projects. The changes are expected to come into effect from 1 August 2011 subject to the outcome of the consultation and parliamentary scrutiny. Submissions of evidence are invited for the consultation until 6 May 2011, with the department also seeking views on the scope of the comprehensive review of the Feed-in Tariff scheme until 12 April 2011. 

To read the full Ministerial statement please click here
To read the DECC press release please click here
To find out more about the consultation please click here