Feed In Tariff Changes - Fast Track Review
As of August 1st, the Feed In Tariff rate for all solar PV systems over 50kW in size has been drastically cut, as a result of the government's recent fast track review. Domestic and other smaller systems are not affected by this change.
The scheduled 8% reduction in the FIT rate for under 50kWp systems for March 2012 however is almost certain to become a larger reduction, with a reduction of 20-30% looking possible to reflect the rapid reduction in the cost of solar PV since the Feed In tariff was launched.
Feed In Tariff rates & changes as of 1st August 2011
|
System Size |
New Rate | Old Rate | Reduction |
|
0-4 kW retro-fit |
43.3 |
43.3 | no change |
|
0-4 kW new build |
37.8 |
37.8 | no change |
| 4-10 kW |
37.8 |
37.8 | no change |
| 10-50 kW |
32.9 |
32.9 | no change |
| 50 - 150 kW |
19.0 |
31.4 | -40% |
| 150 - 250 kW |
15.0 |
29.3 | -49% |
| 250 kW - 5 MW |
8.5 |
29.3 | -71% |
| Standalone |
8.5 |
29.3 | -71% |
Leeds Solar's opinions on these changes
In common with every single respondent to the fast track review, Leeds Solar are certain that the cuts announced to the rates for systems above 50kW will result in no further systems over 50 kW being installed in the UK for many years, at a time when the solar PV industry had been gearing up to play a major part in meeting the UK's carbon reduction and renewable energy targets.
Far from producing better value for money, a 50-70% reduction in the rates payable will simply mean it's not economic at all to install any of these larger scale systems, so all the Feed In Tariff budget will be spent on small more expensive systems resulting in very poor value for money. It's important to note as well that the larger scale systems were at least partially responsible for driving the costs down for the entire industry, as they resulted in economies of scale across the industry that could then be passed on to everyone.
This is not just our opinion, it's the opinion of every single solar PV company who responded to the review, with not one response stating that they believed the larger installations would be economic at these rates.
Along with many others in the industry, Leeds Solar submitted a response to the consultation suggesting that a better and fairer method of reducing the cost of the FIT scheme would have been an across the board cut in the FIT rate of 20-30% to reflect the 25-30% reduction in the costs of solar PV since the scheme started.
As an industry then, we really were being very realistic in our responses and proposals, yet the government entirely ignored all responses to the review. We can only conclude that the fast track review was not a genuine consultation, it was a farce, and this from a government that claimed it would be the greenest government ever.
RIP largescale solar, killed off on 01/08/2011
Gavin Andrews
Leeds Solar
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