Feed in Tariff Reform Statement
Edward Davey has issued a written state on reforming the Feed in Tariff which aims to encourage more customers to take up the opportunity to make money from solar panels.
The Feed in Tariff rate will be reduced with the justification that a lower rate will allow more people to take up the initiative, rather than a smaller number who have large solar panel installations, thus eating into the budget. By reducing the Feed in Tariff rate, the hope is that the budget can be spread further for more people to make money from solar panels.
Solar panel installation and Feed in Tariff news on 9th February 2012 is provided to Find Solar Panel installers, one of the UK's best solar panel installer directories, by external sources including independent solar pv companies.
- Statement by Charles Hendry on Coryton Refinery
Energy Minister Charles Hendry today chaired a third meeting of interested parties to discuss the future of the Coryton refinery. The meeting took place at the Department of Energy and Climate Change in Central London. Local politicians, industry, unions and regulators were among those present.
Following the meeting, the Minister said: “The administrator updated those present on their work to keep refining operations going as the effort continues to find a buyer for the refinery.
“The strong levels of interest in investing in Coryton reaffirms our belief that there is every chance that a sustainable long-term commercial solution can be found.
“I want to emphasize my ongoing appreciation for the collaborative approach taken by the Unions, the refinery’s management, the administrator and others involved.”
Thu 9th Feb 2012 1:07pm - Written ministerial statement by Edward Davey on reforming the Feed-in Tariffs (FITs) scheme
This Government is committed to promoting decentralised energy and the take-up of small-scale low-carbon technologies by the public and by communities.
The Feed-in Tariffs (FITs) scheme is an important instrument in meeting that commitment, but it needs to be reformed as we want as many people as possible to be able to benefit from the scheme. For too long it has been limited to the lucky few.
So today I am publishing a series of documents which mark a crucial turning point for the FITs scheme. Taken as a whole, this reform package will put the scheme on a predictable, certain and sustainable footing for consumers, and for the businesses delivering these exciting renewable technologies.
It is no secret that the uncontrolled surge of solar photovoltaic (PV) installations in the latter part of last year, driven by rapidly falling costs, placed a huge strain on the FITs budget, threatening the Government’s ability to roll out those small scale low carbon technologies in the numbers we wanted over the next few years. We acted as swiftly as possible to respond to the threat this posed both to the future of the FITs scheme and to the bills of hard pressed consumers, through the changes we are now making to the tariffs for solar PV.
But that is by no means the end of the story on FITs. We are now taking the opportunity of the review to put right the many limitations of the scheme we inherited. We have looked hard at the FITs budget and made the most of the flexibility available under the Levy Control Framework to ensure that we can keep the scheme going. The reforms I am announcing today are designed to make that budget go as far as possible to maximise the number of people able to benefit from FITs; to provide greater certainty to the industries concerned; and to ensure value for money to consumers who pay the bills.
FITs reform package
The documents we are publishing today are as follows:-
(i) Government response to the consultation on FITs for solar PV. This supplements our announcement of 19 January 2012 which confirmed the new tariffs for solar PV that will continue to provide a competitive return on investment for householders, communities and others. The new tariffs are designed to apply to all installations with an eligibility date from 3 March onwards.
We are now also announcing the details of the new energy efficiency requirement, and of the new multi-installation tariff rates. We have listened carefully to concerns raised in last autumn’s consultation and have decided that the energy efficiency requirement should be based on an Energy Performance Certificate (EPC) rating of level D or above, not level C or any other option as previously mooted. We have also decided that the threshold at which the multi-installation tariff rates would apply should be increased from more than one PV installations to more than twenty five. This will help community groups, small businesses and councils who do not benefit from the economies of scale that larger aggregators can obtain.
We are also today laying before Parliament draft licence modifications which, subject to the Parliamentary process set out in the Energy Act 2008, make provision for these new requirements to come into effect for new PV installations with an eligibility date on or after 1 April 2012.
(ii) A consultation on solar PV cost controls. In line with the encouraging evidence we have seen of the reduction in costs associated with solar PV, this document sets out proposals for an ambitious programme of six monthly degression for solar PV tariffs, with an added deployment trigger to ensure that subsidy levels keep in step with the market. This builds on the best of the German system and will remove the need for emergency reviews, consistent with our commitment to a stable, predictable future for solar PV and for the whole FITs scheme. It will also help to keep the long-term costs of supporting solar PV down, increasing the number of people able to benefit from FITs over time. The consultation closes on 3 April.
(iii) A consultation on tariffs for FIT technologies other than PV, and other scheme administration issues. This includes proposals to carve out special arrangements for community projects, including greater tariff stability. It also proposes an increase in the rate of return available for micro-combined heat and power, in recognition of the benefits this technology could bring, and potential tariff guarantees for wind, anaerobic digestion and hydro projects, so that those technologies can have greater certainty about what rates of return they will receive. The consultation closes on 26 April.
All these documents, together with the supporting Impact Assessments, are available from the Department’s website.
Thu 9th Feb 2012 10:17am - Improvements to the Feed-in Tariffs scheme
The Government has today announced plans to ensure the future of the Feed-in Tariffs scheme to make it more predictable. Transparency, longevity and certainty are at the heart of the new improved scheme.
The reforms will 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 provides 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.
Climate Change Minister Greg Barker said: “Today we are announcing plans to improve the Feed-in Tariffs scheme. Instead of a scheme for the few the new improved scheme will deliver for the many. Our new plans will see almost two and a half times more installations than originally projected by 2015 which is good news for the sustainable growth of the industry. 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 bright and vibrant future for small scale renewables in the UK and allow each of the technologies to reach their potential where they can get to a point where they can stand on their own two feet without the need for subsidy sooner rather than later.”
A better FIT scheme for consumers and communities
- 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 has listened carefully to feedback on the energy efficiency proposals that we put forward in the consultation of 31st October. 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. We estimate that about 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.
A better FIT scheme for industry
- 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.
Notes for editors:
1. The documents published today can be found at:
- Response to FITs Phase I consultation
- Comprehensive Review of Feed-in Tariffs – Phase 2A: Solar PV cost control (consultation closes on 3rd April)
- Comprehensive Review Phase 2B: Consultation on Feed-in Tariffs – Non-PV tariffs and scheme administration issues (consultation closes on 26th April)
2. The government cannot give certainty on tariff levels to people who install solar panels with an eligibility date between 12th December 2011 and 3rd March 2012 due to ongoing legal proceedings. DECC is appealing to the Supreme Court and has until 21st February to lodge its case.
3. The government received a total of 2,392 responses to its 31st October consultation.
Thu 9th Feb 2012 8:14am - A car that drives itself?
Peter Madden unveils the future of motoring.
In the not-too-distant future, we'll sit back and relax as our cars drive themselves, automatically selecting the quickest route to avoid congestion and cut pollution.
Not that these cars will – strictly speaking – be ours. Who would want the hassle and high-cost of ownership, when we can choose the style of vehicle we need for our particular journey (a single-person micro-car for a meeting in town or a four-wheel drive for a trip to the countryside) and pick it up at a convenient spot with a wave of our smart phone? Drop them off, and their electric motors recharge automatically – and wirelessly – as they await their next commander
Thu 9th Feb 2012 9:15am - Carbon Trust part of UK wide consortia to set up multi-million Catapult centre
Get the latest News from the Carbon Trust. A leading provider of specialist support to business and the public sector. Helping them cut carbon emissions, save energy and commercialise low carbon technologies. Visit our website www.carbontrust.co.uk for more information.
Thu 9th Feb 2012 11:32am
