A blog post

Feed-in tariff fight intensifies as developers predict halt to solar projects

Posted on the 04 April, 2011 at 3:08 pm Written by in Blog, Feed In Tariff, Finance, Government, Incentives, Solar Cells, Standards

DECC says it is in “listening mode” as evidence suggests virtually all mid-sized solar projects will be ditched if incentive cuts go through

The chilling effect of the coalition’s proposed cuts to feed-in tariff incentives on planned solar projects with 50kW capacity was hammered home

PV FIT Sydenham Rd Croydon

PV FIT Sydenham Rd Croydon

last week with the release of new data suggesting that virtually no mid-sized installations will go ahead if the incentives are slashed as planned.

“We’ve all had our rant about the cuts, now we need to help ministers with the evidence they need to make decisions,” Dave Sowden, chief executive of the Micropower Council, told BusinessGreen. “It is still a bun-fight, but it is turning into an evidence-based bun-fight.”

One developer undertook to provide a detailed analysis of the rates of return available to firms at different locations and under the current and proposed tariff regimes.

The analysis found that, with the current tariffs, firms deploying the projects could expect to receive rates of return before tax ranging from 7.1 per cent for a 100kW installation in Edinburgh to 11 per cent for a 500kW array in Plymouth.

In contrast, once the tariff proposed in the government’s consultation is applied, none of the projects attains the five per cent rate of return DECC has said in its impact assessment that it wants to achieve. The best rate of return is 4.7 per cent for a 100kW array in Plymouth, while all other projects would deliver returns of between 3.8 and -1.2 per cent.

For full story see BusinessGreen

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