New 45.4p rate from April 1st February 16, 2012

Ofgem has published a new table on its website outlining the feed-in tariff rates as of April 1 this year. Thanks to an annual boost from the Retail Price Index, some microgenerator’s FiT income will increase to 45.4p per kilowatt hour from that date.

This RPI increase occurs each year, and means that all those who have installed solar panels before March 3, 2012 will see their feed-in tariff payments increase by 4.8 percent. This means that those who are currently receiving the 43.3p rate will receive 45.4p/kWh from April 1.

However, the current court case throws into question the FiT rate for those who have installed between Government’s two reference dates: December 12, 2011 and March 3, 2012.

Those with 4kW installations completed on or after December 12, 2011 are currently receiving the 43.3p rate, although this will change to 21p on April 1 if Government wins on appeal to the Supreme Court.

If Government loses on appeal, all installations from March 3, 2012 will receive the 43.3p rate until April 1, when the rate will still drop to 21p while those who installed and registered before March 3 receive the RPI increased rates.

DECC announce proposed FITs February 9, 2012

On February 9, DECC launched a consultation on its decision to move the FiT scheme towards a tariff structure that is able to respond directly to levels of deployment, replicating a successful model that has been deployed in Germany.

DECC proposes that such a scheme is necessary to allow the British solar industry to operate within the tightly constrained budget.

Instead of targeting a specific a specific rate of return, DECC has decided that, from July 1, tariff level should be set at a rate that “returns broadly within the range of 4.5-8 percent under central cost assumptions.”

DECC proposes that the starting tariff levels for July 1, should be set dependent on the levels of actual deployment of solar in March and April. As a result DECC has modelled for three different scenarios depending on the level of capacity installed in March and April.

DECC’s proposed July 1 tariff rates are outlined below:

The most conservative option released by DECC would see FiT rates slashed by over 20 percent in July, Option A would see March tariff levels slashed by 35 percent. A 68.6 percent drop in just 8 months. A further 5 percent reduction on the July level of tariff will be enacted in October, with 10 percent reductions being introduced every six months thereafter.

The graph below, provided by Gertjan van der Goot, Company Director of CompareMySolar, illustrates the severity of the proposed cuts.

Source: CompareMySolar

Gertjan van der Goot, explained: “We believe that at current prices a 21p tariff can provide a good return for consumers. These additional cuts in July assume further price drops and make it really hard for solar installers to maintain a fair margin. Although these changes provide much-needed clarity for the rest of the year, the UK solar market will have to adapt to this new reality once again.”

DECC is also putting in place a contingency degression mechanism that will be put into action if actual deployment levels exceed 125 percent of expected levels before the planned degression. DECC will publish the planned trigger points in advance and Ofgem has been charged with monitoring the level of actual deployment, releasing a monthly report of installed capacity to the industry.

If deployment reaches one of DECC’s predetermined trigger levels then an immediate announcement will be made, enabling a two-month notice period before the lower tariff level is applied.

In the consultation DECC propose that Government would carry out an extensive annual review, in co-operation with industry to ensure that the mechanism “is controlling costs to an adequate extent and allowing the Scheme to achieve its statutory objectives.”

To complete the consultation, DECC published a table indicating how it foresees the baseline and contingent degression model working in the future. The table below has been modelled on central assumptions about costs reductions over the next three years and with a starting tariff of 13.6p in July.

Proposed generation tariffs for solar PV from 1.4.2012 to 1.4.2015

Source: DECC

While most in the industry will welcome the introduction of a mechanism that will put an end to emergency reviews and ensure that industry is never plunged back into the mess that it currently finds itself in, the severity of the cuts will concern industry greatly.

Energy performance requirements February 9, 2012

The Department of Energy and Climate Change (DECC) has published its response to the controversial Phase 1 consultation on solar photovoltaic feed-in tariffs.

DECC has announced that solar panels installed on or after April 1, 2012 will be required to produce an Energy Performance Certificate rating of D or above to qualify for the full FiT level. DECC lowered the proposed level from C to D as a result of industry concerns raised from almost 3,000 responses to the consultation. DECC viewed the previous proposals for an EPC rating of C or linking it to all financeable measures under the Green Deal, as “impractical at this stage.”  DECC estimates that about half of all properties are already eligible for a ‘D’ rating.

DECC denied appeal January 25, 2012

After deliberating since January 13, the Court of Appeal has today denied the Department of Energy and Climate Change (DECC) a hearing for its appeal against the High Court’s December ruling on UK solar feed-in tariffs. This means the feed-in tariff will now go back to 43.3p for <4kW systems installed until March 3, 2012

Huhne announces new Feed in Tariffs and cut off date January 19, 2012

Energy and Climate Change Secretary Chris Huhne has today responded to mounting industry pressure by announcing that the government will lay draft licence modifications before parliament which will allow tariffs to be cut from April 1st for all installations completed on or after March 3rd.

The new rates are outlined below:

0-4kW installations = 21p/kWh

4-10kW installations = 16.8p/kWh

10-50kW installations = 15.2p/kWh

50-250kW installations = 12.9p/kWh

250-5MW installations = 8.5P/kWh

The announcement has been made so as to bring a close to the ongoing uncertainty surrounding the future of the industry.

If the current government appeal is successful the above rates will be applied from the original reference date of 12 December 2011.

50kWP COMMERCIAL SYSTEMS January 18, 2012

We are able to offer 50kwp systems from £75,000 + VAT. This includes a 10 year warranty on panels and inverters. Contact us for more information.

Court Decision delayed January 14, 2012

The uncertainty over the future of the UK’s solar incentive scheme is set to continue, after three court of appeal judges failed to reach a conclusion on whether or not the government’s proposed changes to the feed-in tariff scheme were unlawful.

It had been hoped that the judges would rule on whether to hear a government appeal against a previous High Court ruling which branded proposed cuts to feed-in tariff incentives as illegal.

However, the judges failed to reach a verdict on whether or not the appeal should be allowed to proceed, ending hopes that a final ruling could be reached this week. They stated that they hope to make a decision as soon as possible in order to provide the industry with certainty over the future of the incentive scheme. But they argued that it was “rather optimistic” to think a decision could be reached before the end of next week.

The judges clearly understand the need to get this issue resolved and have said that they will try to get the decision out by 9 February. In the meantime, all companies and investors can do is sit tight and wait.”   Friends of the Earth, which brought the initial case against the government’s consultation alongside a number of solar firms and green consultancies, reiterated its calls for the government to ditch its appeal and lay legislation before parliament that would allow it to cut feed-in tariff incentives in a legal manner from the end of February.

DECC announce PV installation figures January 12, 2012

The Department for Energy and Climate Change (DECC) has published the latest solar photovoltaic installation figures for 2012, which show that from January 1-8, only 532 solar PV installs were registered for the feed-in tariff scheme.

The dramatic slowing of installations reflects the current uncertainty that is engulfing the UK solar industry, as the Government appeals a High Court decision that deemed proposed cuts to the feed-in tariff as “legally flawed”.

Of the installs registered in 2012, 99 percent are sub 4kW systems. Some confidence may return to the market following DECC’s statement that: “The tariff rate for PV installations less than or equal to 4kW will not fall below 21p for installations with an eligibility date between 12th December 2011 and March 31, 2012.”

It is predicted that the UK solar market will continue to stagnate until the legal battle currently being fought is resolved. Until that point installers cannot confidently quote exact feed-in tariff figures to potential customers.

3.75kwp systems £7900 January 12, 2012

Due to our buying power we are now able to offer 3.75kwp systemsfully fitted from £7900 including scaffolding and VAT.

This means with the new 21p tariff you will still enjoy a return of approx £825/ annum.

Contact us for more information

Appeal court hearing January 12, 2012

Tomorrow the Court of Appeal will decide whether it will grant a hearing for the Department of Energy and Climate Change (DECC), which still insist that it was necessary to cut solar feed-in tariff rates by up to 50 percent with a cut off date of December 12, 2011.

Friday the 13th could hold great significance for the future of the UK solar market.