UK Solar Photovoltaics Industry 2010-2012 RIP

The Government yesterday published proposals to introduce new (and much reduced) Feed-in Tariff rates for PV systems with a total installed capacity of 250 kW or less. The Government is proposing that these tariffs are implemented from 1 April 2012 but apply to all solar PV installations with an eligibility date of on or after 12 December 2011.

The eligibility date is the date on which the FITs licensee receives the consumer’s request for FiT registration of a commissioned installation, which must include a valid MCS certificate. DECC will be recommending that consumers use special delivery so they have proof that their licensee has received their application and MCS certificate prior to the reference date.

These proposals are set out in a consultation document. The consultation will run from Nov 1st, ending on 23 December 2011. Instructions for responding to it are contained in the consultation document.
www.decc.gov.uk/en/content/cms/consultations/fits_comp_rev1/fits_comp_rev1.aspx

The Government is proposing the following rates for solar PV from 1 April 2012:

up to 4 kW   21p/kWh
4 – 10 kW   16.8p/kWh
10 – 50 kW   15.2p/kWh
50 – 250 kW   12.9p/kWh

 

The rates are a 50% reduction on current levels.

An important element of the proposals is the inclusion of the 12 December 2011 reference date. This would mean that any new solar PV installations with an eligibility date on or after 12 December 2011 will receive the current tariff rate in respect of generation up to 31 March 2012, but in respect of generation from 1 April 2012 they will receive the new, lower tariff rate.

The Government’s consultation also includes proposals for a new energy efficiency requirement for FITs for solar PV and new multi-installation tariff rates for aggregated solar PV, including systems installed as part of free solar PV schemes.  It is proposed that both these changes will apply to new PV installations with an eligibility date of on or after 1 April 2012. The export premium remains at 3.1p/kWh.