Feed-In Tariff RPI increase for installations before 31 december 2013

[Gavin A]

There's an important quirk in the Feed In Tariff scheme rules that I'm not sure everyone is aware of, but is potentially pretty important...

link

Basically all installations that registered on or before December 31st 2013 receiving an inflation linked increase in the Feed-In Tariff rate they will receive from 1st April 2014.

This means that Solar PV systems installed in November and December 2013 will receive approximately 2.5% more in total Feed-In Tariff payments for the lifetime of the system than systems that are installed from January-March 2014, which won't see their first inflation linked increase until April 2015. (exact rate tbc). As the annual inflation linked increases are effectively compounded, this will have a knock on effect through the lifetime of the feed in tariff payments for the system.

So installing before the end of December would make sound financial sense for anyone thinking about waiting til the spring etc.

Official DECC Guidance

• installations with eligibility date between 1 April-31 December receive RPI adjustment from 1 April of the next FITs year
• installations with eligibility date between 1 January – 31 March receive RPI adjustment from 1 April in the following FITs year

https://www.gov.uk/government/uploa...PI_link-Export_Tariffs-2_Month_Degression.pdf


Just for clarity, there is also a 3% reduction in the Feed In Tariff from 1st April 2014 for under 50kWp systems, and a 3% reduction from 1st January for above 50kWp systems.

ps sorry, the formatting seems to have messed up.

 

[gadgetfadget]

Gavin

Thanks for pointing this out so clearly! I was aware of the change but had put it to the back of my mind.
Your post has brought it back to the front. :hurray:

 

[Spinball]

So get the PV system now even though we aren't band D energy rating on the house? (We were going to replace the old gas boilers first)

 

[Worcester]

Nope because with an EPC of worse than D, you'll still be better off after you've done the boilers!

At the moment it just means that you don't get the inflation rise on the 1st April, this clause came in last year after the two month 'quarter' and enshrined it in the scheme at that time, it shouldn't have been a 'surprise'.

The RPI runs December to December, degressions go from Quarter to Quarter, with so few degressions, one will be triggered automatically on 1st April, so it would make sense to get the boiler done before then (on the current EPC / GDAR) then get a new EPC after the RHI application has gone in, so it is now up to D, and do the PV before April - A busy spring

 

[John Allen]

Why not speak to the installation company and ask them to do the EPC now, but not lodge it, to see what the banding is? Then if their DEA is friendly enough ask him to add the PV to see if it brings the house to a D, if yes install PV have the EPC carried out on the day of commissioning of the PV and get registered for FIT.