Government unveils deep cuts to Feed-in Tariff 18/03/11 | Aardvark Environment Matters

Government unveils deep cuts to Feed-in Tariff 18/03/11

by Nick Leaney

DECC has published proposals for consultation to reduce the financial support for larger-scale solar installations under the Feed-in Tariff (FiT) scheme.

Under the proposals, solar installations with a capacity of between 50 kW and 150 kW will receive 19p/kWh through the FiT scheme. Installations with a capacity of between 150 kW and 250 kW will receive 15 p/kWh, while those of between 250 kW and 5 MW will receive 8.5p/ kWh. This compares to tariffs of 32.9 p/kWh for installation of between 10 kW and 100 kW and 30.7 p/kWh for those between 100 kW and 5 MW, which were due to come into effect from this April.

The Government said it was launching the consultation following evidence that showed larger scale solar projects could potentially soak up the subsidy that would otherwise go to smaller schemes or other technologies such as wind, hydro and anerobic digestion (AD).

"The FITs scheme has been a success since its launch in April 2010 with over 27,000 FITs installations registered to date," said energy minister Greg Barker, but he added: "The projections for take up of FITs published by the previous Government failed to anticipate any large or small scale non-domestic solar PV installations until 2013. These projections have clearly proved to be flawed. Current market indications are that a rapid increase in the number of larger solar installations entering the scheme could distort funding for smaller and domestic scale installations as well as other technologies."

Aardvark is advising a number of clients on proposed solar PV developments further to this announcement which was expected following the announcement of the fast track review by DECC in February.

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