You may have seen our blog yesterday about the confusion surrounding the Feed-in-Tariff, and we wanted to outline how things stood. Well, the government today has announced plans to improve the fit scheme by making it more predictable.
Greg Barker, Climate Change Minister has said that he wants to instil transparency, longevity and certainty into the renewable energy industry. This is in a bid to regain consumer and industry confidence to promote investment in renewable energy and technology. After the last couple of months with court battles and no exact idea on what tariff you would receive, this latest statement outlines how the tariffs will work.
The DECC claims that a surge of installations, caused by a 45 reduction in estimated installation costs since 2009, was to blame for draining the Feed-in-Tariff’s budget. This apparently forced the government into the decision to cut the tariff.
Greg Barker said, “Instead of a scheme for the few the new improved scheme will deliver for many.” He believes the changes will bring the scheme to a lot more people, predicting more than twice the amount of people will have a renewable technology installation than originally projected by 2015!
So, what is happening with the Feed-in-Tariff now?
- The lower tariff of 21p/kWh will take effect from 1st April 2012 for domestic sized solar installations, which are eligible from 3rd March. Larger installations have different reductions.
- If you have an installation after 1st April 2012, you will have to provide an Energy Performance certificate rating of ‘D’ or above to qualify for the full fit. It is estimated that approximately half the properties in the UK are currently eligible for this.
This might be good news for people who have installed in the last few months as you may be receiving the higher tariff of 43p/kWh.
Artcile sourced http://www.decc.gov.uk/