Government Consultation on Feed-in Tariffs for Solar PV

As you may have heard, the UK Government is proposing to reduce the feed in tariff for new solar PV installations by 50%. Their rationale for doing this is that the cost of installation has reduced by about 30%. The proposal is now out for consultation and you can take part.

According to the Sustainable Scotland Network the consultation contains the following key proposals:

• Reduction of the FITs rate for domestic solar electricity production (under 4kW in size) from the current 43.3p/Kwh to 21p/Kwh. The new rate would apply to all PV schemes with an eligibility date on or after 12 December 2011. Those who already receive FITs will continue to receive their current rate and those with an eligibility date on or before 12 December will receive the current rates for 25 years. Reduced rates are also proposed for schemes between 4kW and 250kW.
• Introduction of a new multi installation tariff rate. Owners with more than one solar PV scheme at different locations would receive a ‘multi-installation rate for aggregated solar PV schemes’ set at 80% of the standard tariff for individual installations.
• New energy efficiency requirements. In order to be eligible for FITs from 1st of April 2012 the owner would have to demonstrate that their property had an Energy Performance Certificate level of C and/or or taking up all the measures potentially eligible for Green Deal finance to qualify for FITS.
• Community Projects. As part of the consultation DECC will consider if more can be done to help community project fully benefit from FITS.

Climate Change and Energy Minister Greg Barker said:

“My priority is to put the solar industry on a firm footing so that it can remain a successful and prosperous part of the green economy, and so that it doesn’t fall victim to boom and bust.
“The plummeting costs of solar mean we’ve got no option but to act so that we stay within budget and not threaten the whole viability of the FITs scheme."

Instructions for taking part in the consultation process can be found here on the DECC web site.