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Results of Feed in Tariffs (FiTs) review announced

 Jun, 09 - 2011   Green Issues

Today (9th July) the Government has announced the new Feed in Tariff (FiTs) levels for large scale solar and anaerobic digestion. The new tariff levels will be introduced with affect of the 1st of August.

SOLAR PV:
>50 kW – ≤ 150 kW Total Installed Capacity (TIC) – 19.0p/ kWh
>150 kW – ≤ 250 kW TIC – 15.0p/ kWh
250 kW – 5 MW TIC and stand-alone installations – 8.5p/ kWh

ANAEROBIC DIGESTION:
≤ 250 kW – 14.0p/ kWh
>250 kW – ≤ 500 kW – 13.0p/ kWh

Unfortunately, for projects over 50kW this means a reduction in the cash-back available; however this is good news for householders, small businesses and communities who won’t be affected by these changes.

The fast track FiTs review looked at reducing the tariffs for large scale solar to protect the money available for smaller projects and the range of technologies supported under this scheme. When FiTs was originally introduced the number of large-scale projects to take-up the initiative was not anticipated, potentially resulting in finance running out too quickly. Every 5 MW large scale solar scheme would incur a cost of approximately £1.3 million per year, so if multiplied by 20 such schemes, for example, this would add-up to £26 million – money that could support PV installations for over 25,000 households.

Climate Change Minister, Greg Barker said: “The new Feed in Tariffs will ensure a sustained growth path for the solar industry while protecting the money for householders, small businesses and communities and will also further encourage the uptake of green electricity from anaerobic digestion.”

“I want to drive an ambitious roll out of new green energy technologies in homes, communities and small businesses and the FIT scheme has a vital part to play in building a more decentralised energy economy.

“We have carefully considered the evidence that has been presented as part of the consultation and this has reinforced my conviction of the need to make changes as a matter of urgency. Without action the scheme would be overwhelmed. The new tariffs will ensure a sustained growth path for the solar industry while protecting the money for householders, small businesses and communities and will also further encourage the uptake of green electricity from anaerobic digestion.”

Logic4training delivers Microgeneration Scheme (MCS) approved courses for domestic solar PV installers, who will not be affected by today’s announcement – if anything, business will continue to boom within this market. To book your place, click here.

For further information on the results of the Feed in Tariffs 2011 review visits the Department of Energy and Climate Change (DECC) website.