The Government recently published “Feed-in Tariffs Scheme: Summary of Responses to the Fast-Track Consultation and Government Responses”

This made some important points:

  • 40,000 FIT installations since scheme began, mostly domestic
  • Scheme spending parameters mean savings to projected costs need to be made (10%, or £40m, in 2014/2015)
  • Government is committed to achieving the legally binding target of 15% of energy from renewables by 2020, and will soon issue the Renewables Roadmap to state how this will be achieved.
  • Solar installations over 50kWp are now achieving more than 5% IRR, which was the level originally envisaged
  • Funding for larger schemes would remove the benefits for a wider range of beneficiaries
  • Over 500 responses were made, many in support of larger PV systems which has reinforced the Government’s commitment to action
  • New rates are confirmed as follows from 1st August 2011:
    • 50-150kWp – 19.0p/kWh
    • 150-250kWp – 15.0p/kWh
    • 250-1000kWp – 8.5p/kWh
  • Schemes over 250kWp are protected from FIT rate degression at April 2012
  • There is no transitional period beyond 1st August 2011, and schemes over 50kWp that are in development but not completed by that date will be subject to lower FIT rates.
  • Roof rental aggregation schemes are included in the Comprehensive review, with no changes likely to be made prior to April 2012.  The Government will not act retrospectively (All Eco Energy Note: when compared with Spain, Czech Republic and Australia this is a positive statement)

Whilst this is restrictive on the large scale commercial schemes, it does enable a rapid growth and focus to be put on the diverse network of smaller installations that will now result.  Whether this is the right decision for the industry or not, only time will tell.  The Government has consdered the responses from the initial review and believes that it is making the right decision for the Country.  As an industry we must now help them deliver this new vision.

See the full report: