News Article
UK Government Rains On Large Scale PV
Despite heady opposition the UK government has revealed they are changing the FiT process exactly as they proposed before the consultation process.
New generation tariffs for large scale solar and anaerobic digestion under the Government's green electricity scheme have been confirmed and as feared by much of the PV industry the government has chosen the path announced before any consultation commenced. The announcement follows the recent public consultation on large scale solar and anaerobic digestion which closed on 6th May 2011. The fast track review looked at reducing the tariffs for large scale solar to protect the money available for small scale projects and the range of technologies supported under this scheme. The review was launched following initial evidence showing the number of large scale solar projects in the planning system to be much higher than anticipated.
Despite strong opposition from the PV and other renewable industries as well as the plea for the government to consider public spaces, regional fuel poverty and the opportunities for large scale projects on existing structures the government is insisting the new plan has been confirmed by the ‘overwhelming response to the consultation process. This seems unusual considering the vocal opposition to the plan.
Energy and Climate Change Minister Greg Barker said, “I want to drive an ambitious roll out of new green energy technologies in homes, communities and small businesses and the FIT scheme has a vital part to play in building a more decentralised energy economy. We have carefully considered the evidence that has been presented as part of the consultation and this has reinforced my conviction of the need to make changes as a matter of urgency. Without action the scheme would be overwhelmed. The new tariffs will ensure a sustained growth path for the solar industry while protecting the money for householders, small businesses and communities and will also further encourage the uptake of green electricity from anaerobic digestion.”
According to DECC over 500 responses were received and carefully analysed before a decision was made regarding the change in tariffs. The fast track review showed that the number of planned larger PV projects is much higher than originally expected. Without urgent action, the scheme would have been overwhelmed within a very short period of time. Every 5 MW large scale solar scheme would incur a cost of approximately £1.3 million per year, which means that 20 such schemes would incur an annual cost of around £26 million, money that could support PV installations for over 25,000 households. While the general consensus was there was a need for a review and some change it appears the government has missed an opportunity to provide real change to poorer areas as well as provide struggling schools and charities with a potential income stream.
The changes, to take effect from 1st August for new installations and subject to Parliamentary and State aid clearance, will help manage the finances of the Feed-in Tariffs to ensure value for money for the consumer and to help protect the scheme in the future. Solar schemes under 50kW are unaffected by this review.
From the 1st of August 2011, new entrants into the FIT scheme will receive amended tariffs as set out below:
Solar PV:
>50 kW - ≤ 150 kW Total Installed Capacity (TIC) - 19.0p/ kWh
>150 kW - ≤ 250 kW TIC - 15.0p/ kWh
250 kW - 5 MW TIC and stand-alone installations - 8.5p/ kWh
Anaerobic digestion:
≤ 250 kW - 14.0p/ kWh
>250 kW - ≤ 500 kW - 13.0p/ kWh
