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FIT Comprehensive Review 9th February 2012

On the 9th February the Government published decisions it has taken following the analysis of proposals set out in the Comprehensive Review Phase 1.  Please see DECC summary here.

The Government also published further proposals on Phase 2 of the Comprehensive Review;

Part 2A sets out Government proposals for solar PV cost control.

Part 2B sets out Government proposals for other technologies.

Key Facts from the 9th February proposals  

  • A tariff of 0.21./kWh will take effect from the 1st April 2012 for domestic - size solar panels with an eligibility date of on or after 3rd March 2012.  Other tariff reductions apply for larger installations.  Please Click here.
  • Properties installing solar PV panels on or after 1st April this year will be required to produce an Energy Performance Certificate (EPC) rating of 'D' or above to qualify for the full FIT. It is estimated that about half of all properties are already eligible for 'D' rating.
  • From the 1st April 2012, new multi installation' tariff rates set 80% of the standard tariffs will be introduced for solar PV installations where a single individual or organisation is already receiving FITs for other solar PV installations.  This reflects the lower costs of such installations, as they benefit from economies of scale.  Based on the feedback received, the threshold is set at more than 25 installations.  Individuals or organisations with 25 or fewer installations will still be eligible for the individual rate.  DECC is now consulting on a proposal that social housing, community projects and distributed energy schemes be exempt from the multi installation tariff rates.
  • The tariff period for solar PV is proposed to reduce from 25 years to 20 years, which would bring it in line with other technologies.
  • The tariff for micro-CHP installations will be increased to recognise the benefits this technology could brings and to encourage its developments.
  • In line with evidence of falling costs for solar PV, DECC is proposing to peg the subsidy levels to cost reductions and industry growth.
  • Using budget flexibility to cover the overspend resulting from high PV uptake this year, while still allowing £460 million for new installations over the Spending Review period.  This won't have any impact on consumer bills beyond the agreed overall cap on renewable subsidies as it will be primarily funded from an under spend on the budget allocated for large-scale renewables.

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