On the 27th August the Government announced its review consultation for the Feed in Tariff (FiTs) scheme, with cuts proposed for both the domestic and commercial versions of FiTs from January 2016, resulting in zero tariffs for domestic applications from January 2019; a huge blow for the renewables sector. According to the Solar Trade Association’s (STA’s) predictions, the initial degression will look something like this:
New Tariff bands Current rate (Oct-Dec 2015) p/kWh New proposed rate from Jan 2016 p/kWh STA calculated IRR with new rate (roughly)
0-10kW 11.30-12.47 1.63 ~5%
10-50kW 11.30 3.69 ~8%
50-250kW 9.21-9.63 2.64 ~6%
250kW-1MW 5.94 2.28 ~5%
1MW-5MW 5.94 1.03 ~5%
Standalone 4.28 1.03 ~4%
Other changes: Some of the tariff bands are also being changed:
  • 0-4kW and 4-10kW is being merged
  • 50-150kW and 150-250kW is being merged
  • 250kW-5MW is being split into 250kW-1MW and 1-5MW.
  Following on from the initial degression, each quarter will see further degressions, in the form of the tariff cap. By January 2019 tariffs will be zero under domestic, commercial rooftop under 1MW and standalone. Deployment-based degression will be maintained, and changed to 5% and 10%. The deployment thresholds are significantly reduced (see below).
Degression band 5% drop in tariff threshold (MW) 10% drop in tariff threshold, and cap on deployment (MW)
0-10kW 16 17.8
10-50kW 9.2 10.3
>50kW 7.9 8.8
Standalone 4.5 5
A deployment cap will also be imposed which means that no further schemes above the cap will obtain a tariff. Other changes:
  • The removal of a ‘deeming’ export, therefore requiring a Smart Meter for each installation
  • Uplifting the EPC requirement from D to C, with exemptions for schools and community schemes
  • All systems must be notified to the DNO
  • Removal of scheme extensions
The full consultation on the review of the Feed in tariff can be viewed here:  https://econsultation.decc.gov.uk/office-for-renewable-energy-deployment-ored/fit-review-2015, including an online survey where you can have your say. What do you feel about these changes? Will they affect your livelihood? How do you think we can keep the renewables momentum going without subsidy?

Smart Meter Opportunities

Smart Meters are now a requirement of receiving FiTs and more generally being rolled out across the UK across the next five years. We are launching Smart Meter training courses, for more information, click here.  
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