Changes to FIT coming sooner that we thought!

[greyt]

From Decc's Twitter feed :-

#FITs We're waiting for the written ministerial statement to be been laid in Parliament. As soon as we hear, we'll publish.

 

[delleray]

Greg Bakers written statement on feed in tariffs now available at
http://www.decc.gov.uk/en/content/cms/news/gb_fits/gb_fits.aspx


The proposals are subject to an eight-week consultation period.
If implemented, they would introduce a new tariff for schemes up to 4kW in size of 21.0p/kWh – down from the current 43.3p/kWh. Reduced rates are also proposed for schemes between 4kW and 250kW, to ensure that those schemes receive a consistent rate of return.

Under the proposals, the new tariffs would apply to all new solar PV installations with an eligibility date on or after 12 December 2011. Such installations would receive the current tariff before moving to the lower tariffs on 1 April 2012. Consumers who already receive a FIT will see their existing payments unchanged, and those with an eligibility date on or before 11 December 2011 will receive the current rate.

He says that this date is PROPOSED..

... We are proposing that the new generation tariffs should apply from 1 April 2012 to all new solar PV installations which become eligible for FITs on or after an earlier ‘reference date’ which we propose should be 12 December 2011. Installations which become eligible for FITs before the reference date will not be affected and will continue to be eligible for the current generation tariffs...

So this is what must be lobbied to change to coincide better with 1 April 2012.
This may even be a 'give away' negotiating point.. or more like alcohol/petrol duty rises announced in a budget set-up to stop an uncontrolled rush...

The eligibility date of a project is based on it being commissioned (in working order) and having its request for accreditation received by a FIT licensee (schemes up to 50kW) or Ofgem (more than 50kW).

It used to be 'approved date' but reading the paper it clarifies the larger generation condition..

“Eligibility date” means the date from which an installation’s eligibility for FIT payments commences.

It is defined in Condition 33 of the Standard Conditions of Electricity Supply Licences, and is the later of the date:
(a) as applicable, of

(i) receipt by Ofgem of a FIT generator’s written request for ROO-FIT accreditation in a form acceptable to Ofgem (for installations with a declared net capacity of over 50kW); or

(ii) receipt by a FIT licensee of a FIT generator’s written request for MCS-certified registration (for installations with a declared net capacity of up to 50kW); or

(b) on which the eligible installation is commissioned.
...
the request for accreditation must include a Microgeneration Certification Scheme (MCS) certificate.

but they WILL be open to pressure from consumer groups/community projects as well as the suppliers to change this timing....

.....
However, we will consider representations made during the consultation both as to
(i) the principle of applying the lower tariff to new installations installed from a
reference date (12 December 2011) that comes before the legal implementation of
those tariffs (1 April 2012); and (ii) whether the proposed reference date should be
12 December 2011 or some other date.

d.

 

[finchy]

≤4kW (new build)	37.8	21.0
≤4kW (retrofit)	43.3	21.0
>4-10kW	37.8	16.8
>10-50kW	32.9	15.2
>50-100kW	19	12.9
>100-150kW	19	12.9
>150-250kW	15	12.9
>250kW-5MW	8.5	8.5*
stand alone	8.5	8.5*

Band (kW)Current generation tariff (p/kWhProposed generation tariff (p/kWh)

 

[Echo]

The consultation ends on the 23rd Dec, yet the reference date is 12 Dec. Go figure. Absolute **********.

 

[flamefix]

The consultation ends on the 23rd Dec, yet the reference date is 12 Dec. Go figure. Absolute **********.

That's joined up government thinking for you. It is effectively a 12th December cut off date, one can't work to anything other. They should set the date at 31st December pending the consultation but they have another agenda.

 

[delleray]

yep
the consultation release page
Comprehensive Review Phase 1: Consultation on Feed-in Tariffs for solar PV - Department of Energy and Climate Change
the consultation doc itself (pdf) ..
http://www.decc.gov.uk/media/viewfi...its-scheme-consultation-doc.pdf&minwidth=truehttp://www.decc.gov.uk/assets/decc/...view-p1/3364-fits-scheme-consultation-doc.pdf

d.

 

[TedM]

Rent-a-roof schemes only get 80% of these rates, and anyone failing the EPC test from next April will only get 9p.

 

[pwboston]

We are just going through the accreditation stage now after paying all the money to get things up and running, so havent had a chance to get our investment back yet.

Buts its now official, on the government sites and also the energy trust has put it back up.

 

[trevor79]

in order to be eligible for existing tariffs a PV installation with a total installed capacity of up to 250kW must be
[FONT=Arial MT,Arial MT][FONT=Arial MT,Arial MT]commissioned[/FONT][/FONT][FONT=Arial MT,Arial MT][FONT=Arial MT,Arial MT][/FONT][/FONT]14 [FONT=Arial MT,Arial MT][FONT=Arial MT,Arial MT]and have its request for accreditation received [/FONT][/FONT][FONT=Arial MT,Arial MT][FONT=Arial MT,Arial MT][/FONT][/FONT]by a FIT Licensee
[FONT=Calibri,Calibri][FONT=Calibri,Calibri]14
[/FONT][/FONT][FONT=Calibri,Calibri][FONT=Calibri,Calibri]An installation is "commissioned" upon the completion of such procedures and tests as constitute, at the time they are undertaken, the usual industry standards and practices for commissioning that type of installation in order to demonstrate it is capable of operation. [/FONT][/FONT]

 

[PowerFlexEnergy]

As usual, Ted has picked up on the 2 most important points that everyone else has missed.

Those two points make it mostly unworkable

 

[Everyreasonto]

This is going to destroy thousands of jobs, mine being possibly one of them.

 

[langstroth2]

Those two points make it mostly unworkable

I dont understand. The EPC test I get, but why does an attempt to limit rent-a-roof companies from using up the FiT budget make it unworkable?

 

[solarfred]

Rent-a-roof schemes only get 80% of these rates, and anyone failing the EPC test from next April will only get 9p.

Did I see that also applies to landlord schemes where there is one owner of multiple meters?

 

[PowerFlexEnergy]

Anyone with more than one installation will only get 80% of the reduced FIT.

Landlords, housing associations, councils?, care homes, industrial estate owners, property developers, businesses with more than one building, anyone with two electricity supplies and two systems connected.

Numbers I have run show a 15 year payback at 6%.

Better than a bank but at least you can get your capital out of a bank (in theory) but you can't get it back off the roof.

 

[steveax3]

Seems to be all coming down to whether customers/investors see 4-5% return as acceptable for a non-returnable capital investment. Even if equipment and installer prices continue to reduce rapidly (which they probably will in the short term to try and maintain customer demand and get rid of surplus stock), which may temporarily push returns up to 6-8%, I can see DECC just reviewing the rates again to regulate the returns back to 4-5% at best.

 

[Earthstore]

How can the DECC put the FIT in consultaion, but midterm of this, introduce the new rules?

 

[Tiberius]

Well we know where the funding for this has gone, sure many of you seen the governments £1bn investment into economy projects announced on the same day as the FIT cuts.

Oh and two of those projects are power stations which are ready to go to start being built next year...

 

[GaryM]

Is this now a done deal, cut off date of December 12th or do they have to vote on the issue?

 

[Graeme Harrold]

I agree in principle that rent-a-roofs get hit, after all its their greed that has caused some of this. The larger companies are removing money from the UK at a great rate of knots due to forgein investors and TAX breaks. It all due to the Government geting it all wrong from the start leaving the system open to this abuse, so hopefully this will aim to keep UK customer money in UK pockets and help rebalance the FIT system. The next key point is fitting between Dec and Apr to beat the EPC requirement.

 

[Dale200bhp]

The EPC, do we do a survey ourselves then for free? More time wasted? as most will fail. Or do we have to get some one in, Im sure it will reduce the amount of potential clients.