NEWSREVIEW
Government aims to shed light for stormy industry
THE UK government has unveiled its proposed changes to the FiT scheme claiming it will open renewable energy to the masses and not just a few. According to the press release from DECC the new FiT will be more predictable with transparency, longevity and certainty at the heart of the new improved scheme. The government expects the reforms to provide greater confidence to consumers and industry investing in exciting renewable technologies such as solar power, anaerobic digestion, micro-CHP, wind and hydro power. The Feed-in Tariffs (FITs) scheme will provide a subsidy, paid for by all consumers through their energy bills, enabling small scale renewable and low carbon technologies to compete against higher carbon forms of electricity generation. The surge of solar PV installations in the latter part of last year, due to a 45% reduction in estimated installation costs since 2009, has placed a huge strain on the FITs budget after the government underestimated the potential success of the scheme.
Climate Change Minister Greg Barker said. “We are announcing plans to improve the FiT scheme. Instead of a scheme for the few the improved scheme is for the many. Our plans will see almost two and a half times more installations than originally projected by 2015. We are proposing a more predictable and transparent scheme as the costs of technologies fall, ensuring a long term, predictable rate of return that will closely track changes in prices and deployment.
“I want to see a vibrant future for small scale renewables in the UK and allow each of the technologies to reach their potential and stand on their own two feet.”
A tariff of 21p/kWh will take effect from 1st April this year for domestic-size solar panels with an eligibility date on or after 3rd March 2012. Other tariff reductions apply for larger installations. The Department says it has listened carefully to feedback on the energy efficiency proposals. Properties installing solar panels on or after 1st April this year will be required to produce an Energy Performance Certificate rating of ‘D’ or above to qualify for a full FIT. The previous proposals for a ‘C’ rating or a commitment for all Green Deal measures to be installed was seen as impractical at this stage. Half of all properties are already eligible for a ‘D’ rating.
From 1st April 2012, new ‘multi- installation’ tariff rates set at 80% of the standard tariffs will be introduced for solar PV installations where a single individual or organisation is already receiving FITs for other solar PV installations. This reflects the lower costs of such installations, as they benefit from the economies of scale. Based on the feedback received, the threshold is set at more than 25 installations. Individuals or organisations with 25 or fewer installations will still be eligible for the individual rate. DECC is now consulting
on a proposal that social housing, community projects and distributed energy schemes be exempt from these multi-installation tariff rates.
The tariff for micro-CHP installations will be increased to recognise the benefits this technology could bring and to encourage its development. In line with the evidence of falling costs for solar PV, DECC is proposing to peg the subsidy levels to cost reductions and industry growth to provide more certainty for future investments. This will ensure that subsidy levels keep in step with the market. It builds on the best of the existing German system and will remove the need for emergency reviews.
Using budget flexibility to cover the overspend resulting from high PV uptake this year, while still allowing £460 million for new installations over the Spending Review period. This won’t have any impact on consumer bills beyond the agreed overall cap on renewable subsidies as it will primarily be funded from an under spend on the budget allocated for large-scale renewables.
Failure of government appeal creates solar gold rush
BURNLEY solar panel company Solarlec is experiencing a gold rush after the government lost its second appeal to reduce subsidies paid to consumers. The Court of Appeal ruled that the government acted unlawfully by attempting to reduce the feed-in tariff ahead of the original April deadline.
This has left consumers with a possible window of opportunity to take advantage of cheaper panel prices, as the feed-in tariff may remain at its highest ever rate,
before it is halved on 3 March. Consumers who buy now will potentially secure the high rate for 25 years.
The government will launch a third appeal with the Supreme Court, but insiders predict it will be unsuccessful.
Ged Rowbottom, director at Solarlec, said: “Right now there is an unbelievable opportunity to take advantage of the fantastic deals on panels and have the potential of receiving the higher
subsidiary. Insiders predict the tariff rate will drop further on 31 March. Solarlec has announced capacity to complete 150 installations up to the 3rd March deadline.
Ged added: “Orders are coming in thick and fast following the failure of the government appeal last week – we advise homeowners and businesses to buy now to avoid disappointment. We expect to be able to complete all orders placed before the end of next week prior to the 3 March deadline.”
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www.solar-pv-uk.com Issue I 2012
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