FIT's consultation announced for small scale electricity generation

Updated March 2011

Minister Gregory Barker has today announced the consultation for small scale low carbon electricity generation, as part of the fast-track review of Feed-in Tariffs (FITs).

When announced earlier this year the comprehensive review of FITs was stated to:

• assess all aspects of the scheme including tariff levels, administration and eligibility of technologies;
• be completed by the end of the year, with tariffs remaining unchanged until April 2012 (unless the review reveals a need for greater urgency);
• fast-track consideration of large scale solar projects (over 50kW) with a view to making any resulting changes to tariffs as soon as practical, subject to consultation and Parliamentary scrutiny as required by the Energy Act 2008; and
• alongside the fast track review of large scale solar PV, undertake a short study into the take-up of FITs for farm based Anaerobic Digestion plants.

The document published today by the Department of Energy and Climate Change (DECC) announces consultation on the last two of these points, and seeks views on proposals to changes to tariffs for solar photovoltaic (PV) installations larger than 50 kilowatts and farm scale anaerobic digestion (AD) of up to 500 kilowatts. The proposed new bands and tariffs are:

For large PV installations: 

>50kW - ≤150kW: 19p/kWh
>150kW - ≤250kW: 15p/kWh
>250kW - ≤5MW: 8.5p/kWh

For farm scale AD installations:

≤250kW: 14p/kWh
>250 - ≤500kW: 13p/kWh

DECC is seeking views on proposed tariffs until 6 May 2011. There will be no retrospective changes to generation tariffs implemented as a result of the review, which will only affect new entrants into the FITs scheme. Installations which are already accredited for FITs at the time will not be affected. Following the consultation the changes are intended to take effect from 1 August 2011.

TLT's Renewables team is actively involved in a significant number of projects under the FITs regime, particularly solar PV. For more details on how we can assist you, please contact Maria Connolly.

This publication is intended for general guidance and represents our understanding of the relevant law and practice as at March 2011. Specific advice should be sought for specific cases; we cannot be held responsible for any action (or decision not to take action) made in reliance upon the content of this publication.

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