News Article
DECC Announcements Greeted With Mixed Responses
After much anticipation, and a month later than initially planned, the Department of Energy and Climate Change (DECC) has announced the Solar PV Feed-in-Tariff (FiT) will be reduced from August 1st 2012 to 16p / kWh, based on an average homeowner installation, compared to the current rate of 21p / kWh.
Last year the Government announced an emergency review of the FiT scheme for large-scale solar installations after higher-than-expected demand threatened to deplete the Government's renewable energy budget early. The review resulted in a subsidiary cut of up to 50 per cent for solar PV projects from April 1st 2012, and now further cuts have been announced today from August 1st 2012, as demand rates remain higher than expected.
Damian Baker, CEO for RenEnergy, comments: "Today DECC have finally offered certainty on the Feed-in Tariff, which enables RenEnergy and the rest of the renewable energy industry to give our customers a clear message and make plans that extend beyond the next few months.
"Initially the date was scheduled for July 1st 2012, so the confirmed date of August 1st 2012 proves the DECC have listened to industry pleas of clarity by delaying the cuts for a further month. The cuts are inevitable and the rates that DECC have announced today still offer good returns to those looking to invest in PV. The degression rates are also more in tune with the levels at which we are seeing the cost of PV equipment fall. Overall we are pleased with today's announcement"
Jeremy Leggett, Chairman, Solarcentury commented, "Though investor confidence will remain uncertain given the proposed three-monthly degressions, the majority of the government's policies may herald a new seriousness of intent on solar, and indicate that a meaningful solar industrial policy is now a real prospect for the UK. But, it is our responsibility to continue to challenge the government on solar progress until the day the technology becomes a key part of our energy mix.
Solarcentury looks forward to helping fine-tune vital key points of detail from today's announcement, and playing its part in charting the roadmap to 22GW of solar photovoltaics by 2020. We fully hope that, with collaboration on the scale the minister expects, industry, government and consumers will together invest to exceed 22 GW. We can all make the UK a serious player within the world-changing solar industry that McKinsey and others envisage by the end of the decade. Investors, be they commercial or individual, can potentially be excited about the opportunities in the next years."
DECC claimed that the new tariffs would give a tax-free, inflation-linked return on investment of more than six per centre for most typical, well sited solar panels. Currently homeowners are receiving approximately 10 per cent return so this move to the reduced FiT scheme means homeowners wishing to take advantage of the current rate must act quickly.
