By Kari Williamson
The UK Government has proposed cuts to the feed-in tariff for solar PV in the UK based on the falling costs of solar PV as well as the wider economic climate.
“The green economy does not exist in a vacuum and it is important, particularly in the current climate, that our approach to public subsidy is responsible and results in the widest possible deployment,” Barker says in a statement.
The UK Government is proposing to reduce the feed-in tariff for solar PV with a total installed capacity of up to 4 kW to £0.21/kWh. It is also proposing reductions to the generation tariffs for solar PV installations between 4 kW and 250kW.
“These changes are vital if we are to ensure a lasting FITs scheme,” Barker says.
The proposed start date for the new feed-in tariffs for solar PV is 1 April 2012 for all new solar PV installations that become eligible on or after 12 December 2011.
Multi-installations and efficiency
The consultation also seeks views on two other changes to the FITs scheme for solar PV:
- Firstly, the introduction from 1 April 2012 of new multi-installation tariff rates for aggregated solar PV schemes. These are schemes where a single individual or organisation owns or receives feed-in tariff payments from more than one solar PV installation, located on different sites; and
- Secondly, to strengthen the link between feed-in tariffs and energy efficiency by introducing a new energy efficiency requirement for feed-in tariffs for solar PV. The new requirement would apply to all new solar PV installations which become eligible for feed-in tariffs on or after 1 April 2012 which are attached or wired to provide electricity to a building. If the building does not meet the energy efficiency requirement the installation would receive a lower feed-in tariff rate of £0.09/kWh.
The consultation will close on 23 December 2011.