DECC PUBLISHES FIT CONSULTATION RESPONSE

News Feb 09, 2012 No Comments

Today, the Department of Energy and Climate Change set out revisions to the feed-in tariff scheme designed to place it on a secure footing for the foreseeable future. DECC introduced a new cost-control mechanism, a link to energy efficiency requirements and a number of controversial proposals in its new consultation document, including reducing the tariff lifetime by five years.

DECC has announced that solar panels installed on or after April 1, 2012 will be required to produce an Energy Performance Certificate rating of D or above to qualify for the full FiT level. DECC lowered the proposed level from C to D as a result of industry concerns raised from almost 3,000 responses to the consultation. DECC viewed the previous proposals for an EPC rating of C or linking it to all financeable measures under the Green Deal, as “impractical at this stage.”  DECC estimates that about half of all properties are already eligible for a ‘D’ rating.

DECC’s proposed mechanism for changing tariffs after July will include an automatic baseline transgression of 10 percent every six months, which can be triggered early if deployment exceeds pre-determined levels. The system will be reviewed annually to ensure that it is performing well against its objectives.

DECC is also proposing that solar FiT tariff levels should reduce from July 1, 2012. The rates for July will be 13.6p or 16.5p depending on the volume of deployment of PV in March and April 2012. FiT rates will be further reduced in October by 5 percent, and every six months thereafter. The Department is also consulting on whether the export tariff can be raised and whether or not the lifetime of the FiT scheme should be reduced from 25 years to 20.

Source: Solar Power Portal

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