Here we go again- Feed in tariff cuts to come in weeks

[njcuk]

Yes, I would think so - current rates until 30th September. Hopefully DECC learnt from the changes to FiTs they tried last time that they need to follow the due process and give reasonable warning of future changes.

I can forsee that FiTs support will shrink in line with current tariff bands; e.g. anything currently over 10p will be degressed and retained, anything currently below 10p will go.

So new tariffs would be:

< 4kW - 10p
4 - 10 kW - 8.5p
10 - 50 kW - 8.5p
> 50kW - nil
stand alone - nil

Whether this will happen from October or next April is anyone's guess, but there probably isn't quite enough time to run a consultation to meet the October deadline unless DECC announce their intentions within a few days.

The tariffs that are to apply from 1st October have to be announced before the end of this month.

What I simply can't understand is the gaping hole of 50kW-250kW medium scale commercial industrial. However, I am not surprised by anything in relation to renewable energy and its administration. The biggest farce is that they have not learned from other countries failure to deploy successful fit based schemes.

Ted, where is the information that the sub 50kW market will continue or is it your understanding? Thanks for the info.

Doing basic maths on a 100kW install, who is going to invest in something with a 10 year+ payback (and that is the best case scenario for a high energy user). I certainly would invest elsewhere. Unless, product prices drop massively, the no subsidy option just is not an option at present. Leaves the industry open to cowboys and poor equipment again.

 

[njcuk]

Also, could somebody explain to me 'Grandfathering'? Does this mean that you will not be guaranteed the FIT rate for 20 years index linked? Or will installs up until 1st April next year still get 20 years at a set rate?


Thanks

 

[TedM]

Those figures are just my guesswork, nothing announced for FiT yet other than the consultation on the removal of pre-accreditation and pre-registration.

RO "grandfathering" just means a guarantee that the rate that is in force when an installation is accredited will not be affected by future changes. The consultation proposes to remove that guarantee from today. This only applies to RO not to FiTs.

 

[Worcester]

Hi TedM, they refer to changing FiT in here : https://www.gov.uk/government/consultations/changes-to-financial-support-for-solar-pv

They say that they will consult on it later this year (expect that to be in a month or so ! )

14. Solar PV up to 5MW is also able to deploy under the FIT scheme. The FIT scheme is currently under review. The Government is consulting on a proposal to remove pre-accreditation from the scheme, and later in the summer will be consulting on further cost-control measures relating to the FIT scheme.

 

[TedM]

Yes, I meant they have not issued the consultation yet not that they have not pre-announced it! It's certain that the FiT will be changing but no more detail than that.

 

[njcuk]

Yes, I meant they have not issued the consultation yet not that they have not pre-announced it! It's certain that the FiT will be changing but no more detail than that.

Thanks Ted.

So to clarify, at present, yesterdays deadline does not effect the FITs for installations that take place now? Just RO ones?

 

[Worcester]

Thanks Ted.

So to clarify, at present, yesterdays deadline does not effect the FITs for installations that take place now? Just RO ones?

Yep, that's what the consultation document currently covers.

Expect a consultation document on FIT within the next few weeks, absolute latest sometime in September.


I expect that all new build except self build will be removed as it is now a requirement to include some form of renewables for any buildings getting planning permission after 25th March this year. - In line with the DomRHI.

Other changes, the EPC of D was a cost control measure, though there is a possibility that will be removed, or the band for buildings with a lower EPC revised upwards.

Whatever they do will cause a spike in installations. in the smaller bands - not so easy to spike in the larger ones, and they removed that opportunity for the spike there by closing the pre-accreditation.

 

[TedM]

Yes, that's right. It is just changes to the RO that have been announced so far. But expect consultation on changes to FiTs to be coming soon.

 

[njcuk]

Ok, thanks.

I think the code changes next year for new builds. Not sure what is proposed though.

 

[Worcester]

Ok, thanks.

I think the code changes next year for new builds. Not sure what is proposed though.

It was sneaked in with the Deregulation Act and appears to have an immediate implementation date - they also deleted the code for sustainble homes at the same time.

Most sections of the act had an implementation date, if they didn't, they were deemed to have immediate effect. This particular section didn't have an implementation date! The interpretation seems to be somewhat different though
Deregulation Act and the Code for Sustainable Homes | Planning for Sustainability

 

[TedM]

Also worth noting is that if you have planning permission to build a new home that includes a Codes for Sustainable Homes condition you can now apply to the LA planning dept to have the condition removed. Lots of people doing that now.

 

[Worcester]

So there you have it Green Deal energy efficiency scheme scrapped as Government pulls funding - Telegraph

(Thanks JulianC)

Green Deal goes as well - what to follow - Crystal Ball here: one scheme that encompasses it all FiT, DomRHI, Energy Efficiency, one whole new system launching April 2016

 

[Dave-geo]

I have been reading through the DECC consultation document (I suffer with insomnia!) and do not understand what will still qualify for the subsidy. The exact wording is :-

[FONT=&amp]“Grace periods to the closure of the Renewables Obligation to solar PV[/FONT]
[FONT=&amp]24[/FONT][FONT=&amp]. We propose to offer grace periods equivalent to those offered when the RO was closed to new solar PV capacity above 5MW.[/FONT]

[FONT=&amp]25[/FONT][FONT=&amp]. Accordingly, new solar PV projects of 5MW and below will continue to be eligible to enter the RO after 31 March 2016 (until the full closure of the RO on 31 March 2017) if one of the following criteria is met:[/FONT]

[FONT=&amp]a[/FONT][FONT=&amp]) Preliminary accreditation under the RO has been obtained for the station on or before 22 July 2015. Evidence of preliminary accreditation should be provided to Ofgem with the application for accreditation, which must be on or before 31March 2017[/FONT]

[FONT=&amp]b[/FONT][FONT=&amp]) The following evidence is provided to Ofgem demonstrating that significant financial commitments have been made on or before 22 July 2015 in respect of the project. The evidence should be provided to Ofgem with the application for accreditation, which must be on or before 31 March 2017:[/FONT]

·[FONT=&amp]A grid connection offer and acceptance of that offer, both dated no later than 22 July 2015;
[/FONT]
·[FONT=&amp]A Director’s Certificate confirming ownership of the land, lease of the land, an option to lease or purchase the land, an agreement to lease the land or that the developer or a connected person[/FONT][FONT=&amp]7 [/FONT][FONT=&amp]is party to an exclusivity agreement in relation to the land as of and no later than 22 July 2015 by the developer or proposed operator of the station;[/FONT]

·[FONT=&amp]Confirmation that a planning application had been received by the relevant planning authority in respect of the project no later than 22 July 2015 or a declaration that planning permission is not required”[/FONT]

In section 25 it says if one of the following criteria is met but then under section b it lists three items. Would you need all three items listed in b or would just an agreed grid connection be ok?

Any ideas?

 

[Gavin A]

That's just for renewables obligation certificates ie for ground mount systems up to 5MWp, they've not released any info about any potential Feed In Tariff cuts.

The bit they have consulted on for FIT is the removal of the preliminary accreditation route for anything above 50kWp (not available for anything below that anyway) which to me looks to be a prelude to announcing a cut some or all of the bands for above 50kWp Feed In Tariff.

Reading between the lines, my feeling is that they'll target the standalone segment of the feed in tariff, as they'll expect a bit switch from ROCs to FIT for the ground mounted systems.

The government's repeatedly stated aim is to target support to roof mounted PV, and the install rates for the big roof mounted systems above 50kWp are actually pretty low at around 100-130 installs per quarter (last few quarters of 2014, the 2015 figures haven't been properly processed yet). They probably could justify cutting that a bit, as I think the ofgem backlog might have meant that there have been quarters where it should have been cut more than it was because the installations weren't processed in time, but hopefully nothing too major.

If they are going to cut it significantly I'd prefer it if they cut the duration of the FIT period rather than the up front rate, as payback time is more important than overall percentage return IMO.

 

[Gavin A]

in terms of the ROCs cuts though, basically that's saying that unless a system was already registered before this announcement for the preliminary accreditation, then end of March 2016 is the final cut off for any solar PV system to be eligible for ROCs.