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Tag: Solar Installations

DECC confirms FIT (Feed-in Tariff) changes to be 1st August

At the Ministerial announcement in the House of Commons today, Greg Barker laid out plans for the changes to the Feed-in Tariff to apply from the 1st August 2012

Changes to solar Feed-in Tariffs

Tariffs for solar pv installations to be reduced from 1 August:

  • 16p/kWh for household scale solar pv installations to reflect fall in cost of the technology, delivering a return of about 6% for a typical installation.
  • Tariffs for larger installations also to be reduced to reflect cost reductions but with most tariff cuts lower than proposed in February.
  • Reductions to apply to new installations from 1 August, instead of 1 July as proposed, in recognition of low uptake from 1 April and providing time for industry to adapt.

Multi installation tariff increased to 90% of standard tariff

  • Organisations with more than 25 solar pv installations will get 90% of the standard applicable tariff, increased from 80%, reflecting new evidence on costs involved for these projects.

Reduction in tariffs over time in line with uptake of FITs scheme

  • Ensuring solar PV is not over subsidised.
  • Average tariff reductions of 3.5% every 3 months, reductions will be bigger (up to 28%) if there is rapid uptake.
  • Tariff cuts will be skipped (for up to 2 quarters) if uptake is low.
  • Uptake in 3 different bands (domestic (size 0-10kW), small commercial (10-50kW) and large commercial (above 50kW and standalone installations) will determine the quarterly reductions within those bands.

Increase export tariff from 3.2p to 4.5p/kWh

  • To better reflect the real value of electricity exported to the grid.

RPI index-linking of generation tariffs to be retained

  • Reflecting the high value investors place on this element of the FITs scheme.

Scheme lifetime reduced from 25 to 20 years for new solar installations

  • Reducing the lifetime costs of the scheme and bring solar in line with most other technologies supported under FITs.

Tariffs for installations which do not meet the energy efficiency requirements will mirror the tariffs for standalone installations

  • Ensuring energy efficiency is still encouraged as tariffs are reduced.

Solar firms file for judicial review against feed-in tariff cuts!

Group of solar developers launch legal action, alleging government has trampled over its own processes with feed-in tariff review…

A group of 11 solar firms filed a claim in the High Court late yesterday, seeking a judicial review against energy and climate change secretary Chris Huhne and his decision to launch a fast-track review of the feed-in tariff incentives available for larger solar installations.

The legal action has been widely anticipated ever since the government shocked the industry by launching the surprise review on 7 February. It accuses the Department of Energy and Climate Change (DECC) of reneging on previous commitments to not cut feed-in tariffs until 2012, and failing to adhere to its previously stated processes for reviewing the incentives.

Speaking on behalf of the group filing the claim, Mark Shorrock, chief executive of Low Carbon Solar UK, said that the companies felt that a judicial reviews was the "only course of action left" after raising their concerns over the proposed cuts with the government.

"We hope the secretary of state of energy and climate change will abandon this fast-track review and work with us to find a more appropriate solution for the future of the feed-in tariff," he said in a statement. "In pulling back on a commitment to support solar energy, the government will cause the abandonment of hundreds of community-scale schemes. The cost of not getting this right, aside from the government meeting its climate change targets, include the creation of new jobs, a diversified income for farmers and landowners, reduced energy costs for businesses, and the provision of more secure and reliable energy for the UK. "

Speaking to BusinessGreen, a spokeswoman for the group said the companies were seeking an expedited judicial review that could be completed before the end of the government’s consultation on its proposed cuts to feed-in tariffs, which is scheduled to end next month.

The legal challenge has been launched by Alectron Investments Ltd, Element Power Ltd, Juwi Renewable Energies Ltd, Lark Energy Limited, Low Carbon Solar UK Ltd, MO3 Power Ltd, Donald Anderson, Guy Anderson, Kate Kenyon and The Green Company (Europe) Ltd.

However, the case will be watched closely by the wider solar industry. Many companies have warned that the proposed cuts to feed-in tariffs of between 40 and 70 per cent would make virtually all installations with more than 50kW of capacity financially unviable.

The application for a judicial review centres on a series of legal arguments relating to the government’s handling of the fast-track review.

It notes that previous indications from DECC suggested that the first review of the feed-in tariff scheme would not take place until 2012, and no changes would be implemented until April 2013.

It also claims that, while DECC indicated in November 2011 that an earlier review might take place, this was originally intended to be carried out over a 12-month period with any changes to tariffs implemented from 2012. The government is now planning to impose any cuts to feed-in tariffs from the start of August.

The application points out that the government failed to announce a "trigger point", despite ministerial assertions that an early review would only take place once that pre-announced "trigger point" was reached.

Finally, it accuses the government of failing to provide adequate evidence that the UK is facing an "excessive deployment" of large-scale solar projects that will undermine the effectiveness of the feed-in tariff scheme. It argues that it is "irrational " for the government to cut incentives for cost-effective solar farms and larger installations when the UK has to meet legally binding renewable energy targets.

DECC was unavailable to comment at the time of going to press.

However, the government has consistently argued that cuts to feed-in tariffs are required to stop large solar farms eating into the funds available for domestic rooftop installations. As such, DECC is expected to contest any judicial review.

by James Murray ‘Business Green’, 19th of April 2011 , See his original post here: http://www.businessgreen.com/bg/news/2044601/solar-firms-file-judicial-review-feed-tariff-cuts