Fit review - Breaking News

[SRE]

Solar panel subsidy to be slashed - FT.com

Looks like the announcement could be tomorrow - can hardly wait :angry_smile:

 

[MorganPVI]

Hit the paywall, can you copy and paste?

 

[furrypants]

try this

Google
"Solar panel subsidy to be slashed"

6th link down

 

[MorganPVI]

Nope, I'll just have to register

 

[SRE]

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email [email protected] to buy additional rights. Solar panel subsidy to be slashed - FT.com

[h=1]Solar panel subsidy to be slashed[/h]By Pilita Clark and Jim Pickard

Subsidies for households to install solar panels are about to be slashed by ministers in a controversial move which could make a further dent in the coalition’s green credentials.
Ministers are also on Thursday expected to announce a shake-up of wind power incentives from 2015, which will cut subsidies for onshore wind but improve state help for wave and tidal power.
[h=3]More[/h][h=4]On this story[/h]

• Coalition’s green hue fades with solar cuts
• Anger over failure of carbon capture project
• Fund eyes solar energy farms
• Subsidies slashed for big solar projects
• Cuts cloud outlook for commercial solar power

The news comes hours after ministers confirmed on Wednesday that they were not going ahead with a flagship £1bn carbon capture and storage demonstration project in Scotland.
Intense discussions are taking place about precisely how far to cut the small-scale solar “feed-in tariff” (FiT) which pays households and companies for energy produced.
Some officials in the Department of Energy and Climate Change are calling for a reduction in the subsidy by three-quarters, according to industry sources.
That would mean a fall from the current level of up to 43p per kilowatt hour generated, to as little as 9p per kWh – a move which the industry claims would be devastating. If the government follows past precedent, any change would not affect homeowners with existing solar panels.
It is understood that Greg Barker, climate change minister, is arguing for a compromise tariff that would be less damaging for the industry but still lower than at present.
The department recently put the system under review. “We’ve made clear that tariffs will remain unchanged until April 2012 unless the review indicates the need for greater urgency,” it said.
One coalition source said that money had been “flying out” of the scheme’s fixed budget and action would have to be taken soon. The original tariff levels had been set “embarrassingly” high, he warned.
The number of solar installations has almost doubled since June to more than 85,000 in a scheme that only started in April last year. Solar schemes made up 97 per cent of all projects receiving feed-in-tariffs in September, dwarfing other forms of renewables.
Some investors say they have already priced in the prospect of a cut of up to 50 per cent from the current 29p-43p per kWh, but warn that a higher cut would be difficult to stomach.
Ministers recently endured a separate backlash after cutting the subsidy rate for large-scale systems on August 1 to as little as 8.5p per kWh after being “overwhelmed" by take-up. At the time they justified the move by saying they wanted small-scale generation to take up a larger proportion of the overall FiTs budget.
The row is taking place amid a wider shake-up of renewable subsidies called ROCs (renewables obligations certificates) for wind, waves and biomass. Ministers will maintain the overall annual support for renewables but are adjusting the number of certificates given to different sectors within the industry.





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[gr7]

I don't see anything about an announcement related to PV tomorrow, they are talking about announcing plans for wind power which would take effect in 2015.

 

[MorganPVI]

Thanks SRE. Seems there are reviews all over the renewables sector, maybe the smaller PV systems will sneak through with minimal cuts. Maybe the 4kw Fit will remain unchanged until April. Given the uncertainty it would be best to get an installation on your roof now rather than wait.

 

[GreggElectrical]

My opinion is we will see the 43p drop my 15 pence. I hope im wrong but we'll see.

 

[SRE]

I don't see anything about an announcement related to PV tomorrow, they are talking about announcing plans for wind power which would take effect in 2015.

I suppose it depends on how you read it - I read the first couple of sentences to mean that the solar cut would be announced and the wind cust would be announced too. Maybe it is just wind ........

 

[MorganPVI]

Maybe the larger solar projects will be cut again.

 

[Tiberius]

It says what we already know, its under review and every so called industry source comes out with different figures. If an announcement is soon then how can Greg Baker put forward his case as decision would of been made weeks ago, lets face it the government take weeks to do anything.

 

[SRE]

They've been reviewing it since February even the government should be able to come to a decision given that time!

 

[bommels]

From FITs Review - Department of Energy and Climate Change :

We will consult on the comprehensive review later this year. The review will be completed by around the end of 2011, with tariffs remaining unchanged until April 2012 (unless the review indicates the need for greater urgency).

That little bit between brackets always worried me a bit, as it was always on the cards that FIT could be 'adjusted' before April 2012.

It wouldn't surprise me at all if they decided to pull it forward to 01/01/2012, given the massive takeup of domestic solar PV in the last few months (see the graph next to the FT article).

 

[vernam616]

Rent a roof companys offering free panels have caused this

Always the same, every man and his greedy dog has to jump onto the bandwagon

 

[Worcester]

Current Guess:
10% - 15% on up to 4kWp a new band at 20kWp and a sliding range of cuts (4-10, 10-20, 20-50) such that 20kWp-50Kwp becomes uneconomic.

Though I'm not sure if they can live with only 10%-15%, it could easily go as low as 26p-30p for 0-4kWp