FITs rate cut looms

Updated July 2011

There are just a couple of weeks to go until the FITs rates for solar photovoltaic (PV) installations over 50 kW drop. The details of the changes were reported in our recent briefing on the announcement (see Related publications).

The changes take effect from 1 August 2011 and will apply to all installations with an "eligibility date" on or after that date. The government's response to the fast track consultation clarifies what this means in order to be eligible for existing tariffs. Installations with a declared net capacity of greater than 50kW (and all capacities of AD installations) must, before the 1 August 2011:

• have made an application for accreditation to Ofgem via the ROO-FIT (Renewables Obligation Order feed-in tariff) accreditation process;
• have “commissioned” - in relation to a generating station this means "the completion of such procedures and tests in relation to that station as constitute, at the time they are undertaken, the usual industry standards and practices for commissioning that type of generating station in order to demonstrate that that generating station is capable of commercial operation"; and
• met all other relevant eligibility criteria set out in the Renewables Obligation Order (including being capable of generating electricity on which ROCs could be issued).

The government's response acknowledged that many generators involved in larger scale projects (including those involved in community and public sector schemes) have already invested considerable time and resources in developing projects that they may be unable to commission by 1 August 2011. However, whilst it was indicated that special arrangements for such projects were considered, the government concluded that there would be no transitional arrangements. The focus was on the need to make changes as a matter of urgency.

The effect for generators with projects underway is a race against the clock.

If you have any queries in FITs or renewable energy generally, please contact Maria Connolly who will be happy to assist.

This publication is intended for general guidance and represents our understanding of the relevant law and practice as at July 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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