A blog post

BREAKING NEWS – DECC announce FIT consultation response

Posted on the 09 February, 2012 at 1:20 pm Written by in Blog, Feed In Tariff, Finance, Government, Incentives

DECC have today announced their response to the much maligned FIT consultation (phase) which closed on 23rd December 2011.

Here are the headline changes and time frame for them to come into effect (click here for full details):

New FIT rates for PVcoming into effect from the 3rd March 2012

To be eligible you must have had your installation completed and FIT application form and supporting documents received by your chosen energy supplier by the 3rd March.

Minimum Building Energy Efficiency ratingcoming into effect 1st April 2012

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. The tariff for a building is rated below ‘D’ will be 9p/kWh for the lifetime of the tariff, which means energy efficiency measures will have to be completed ahead, or on day, of your PV installation.

DECC estimates that about half of all properties are already eligible for a ‘D’ rating. Below are DECCs estimated costs for upgrading energy efficiency:

  • £1280 for a detached house with cavity walls currently rated as F where loft insulation, cavity wall insulation, heating controls and hot water cylinder insulation would be needed;
  • £530 for a mid-terrace house currently rated as E that already has loft insulation, but where cavity wall insulation and hot water cylinder insulation are needed.

The typical cost of obtaining an Energy Performance Certificate (EPC) is £50-100 (please contact us for a quote) and will require the visit of an energy assessor to inspect your property. The whole process will take 5-7 days to complete and upload to the central register.

Multiple installation tariff rates – coming into effect 1st April 2012

Defined as installations owned by any individual or organisation a tariff level of 80 percent of the standard tariff, to reflect the lower costs that such installations benefit from.

As a response to feedback, DECC has changed the threshold for the lower tariff from more than one, to more than 25 installations operated by an individual or organistation. However, DECC is consulting on a proposal that would allow social housing, community projects and distributed energy schemes to be exempt from the reduced multi-installation tariff rates.

FIT degressionreviewed every 6 months or when deployment threshold reached

DECC’s proposed mechanism for changing tariffs after July 2012 will include an automatic baseline transgression of 10 percent every six months, which can be triggered early if deployment exceeds ‘pre-determined’ levels. The system will be reviewed annually to ensure that it is performing well against its objective.

Further cuts on 1st July 2012??

DECC is also proposing that solar FIT tariff levels should reduce from July 1, 2012. The rates for July will be 13.6p or 16.5p depending on the volume of deployment of PV in March and April 2012. Given the panic this is likely to induce we would predict the lower 13.6p rate coming into effect which constitutes another draconian 35% cut in the standard tariff rate.

What if I install a system pre-3rd March?

DECC still intends to pursue its appeal to the Supreme Court, which if they win will mean they reserve the right to apply new rates (see above) to all installations completed between 12th Dec 2011 and 3rd March 2012.

This still leaves installers, and consumers, in the position that we cannot guarantee the rate you will receive if we complete your installaiton within the interim period.

We are therefore continuing with our offer where:

  • We will price your system based on the new standard rate of 21p/kWh
  • If the figures still work for you at 21p, you place your order
  • We will guarantee that your installation is completed, and FIT application paperwork is submitted to your energy provider, by the 3rd March
  • If the government then lose their appeal to the Supreme Court you will be best placed to receive the pre-12th Dec standard rate of 43.3p for 25 years (although we cannot guarantee this rate)

For a free survey call us today on 0344 567 9032, complete our online survey request or visit www.pvfit.co.uk