FiT changes explained
Monday, January 30, 2012
The Department of Energy & Climate Change recently announced
a compromise to the proposed changes for Feed-in Tariffs
They originally wanted the price paid per unit to be lowered for
all photovoltaic installations added on or after 12 December 2011.
The date has since been challenged and the 3 March 2012 has been
proposed as an alternative.
The prices are now set to drop from 1st April this
year for all installations put in on or after 3rd March
This means that instead of getting 43p (or less) per unit of
electricity, new installations will only be eligible for a maximum
of 21p. Not so exciting for individual producers but better for the
PV industry and carbon footprint of the country.
Why are they paying less?
When FiTs were first introduced, nobody knew how popular they
would become. What's happened is that lots of new PV installations
have been commissioned and the budget set aside for the tariffs is
being consumed too quickly, at an unsustainable rate.
Paying less money to individual producers means there will
be more left in the pot to encourage and provide for new
installations and developments. That means more people can benefit
from the FiT scheme and the amount of solar energy available to the
UK as a whole can increase at a pace.
There was a consultation period which ended in December 2011.
The results of this are due to be announced on 9 February 2012, and
any requisite legislative changes will be added to the tariff in
time for the new price launch on 1st April.
For more information including the new payment details read the
DECC press release.