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SmartestEnergy Urges Single Rate Tariff

A single rate for all Feed-in Tariff solar projects has been urged by SmartestEnergy in the wake of the Government's announcement of plans to slash payments to domestic-scale installations. The company argues that having the same rate for domestic and commercial solar projects  - with a suggested figure in the region of 15p-19p/kWh  - would provide the best environment to support long term investment.

The Department of Energy and Climate Change (DECC) intends to cut the domestic solar rate from 43.3p/kWh to 21p/kWh from December. The rate for schemes of over 250kW will remain at the 8.5p/kWh reduced level which replaced the previous 29.3p/kWh rate from August. Although independent generation consolidator SmartestEnergy said a reduction in the disparity between the two rates was to be welcomed, it believes further alignment is needed.

"Solar panel technology is the same regardless of the size of installation and there is limited potential for economies of scale. Given that, we believe there should be no unjustified distinction between domestic and commercial rates," said Colin Prestwich, Head of Regulation at SmartestEnergy which is an active participant in the FiT scheme.

"Having significantly different tariff rates threatens to slow the growth of renewables. At the end of the day, renewable energy is renewable energy and it should make no difference where it comes from."

SmartestEnergy suggested a tariff in the region of 15-19p applying to all solar projects as part of its official response to DECC's fast track review of FiTs earlier this year.
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