T
TedM
DECC today announced the terms of the review of Feed in Tariffs for larger scale photovoltaic systems – those over 50kW.
They propose that the rates for pv are revised into the following new bands:
* >50kW – ≤150kW: 19p/kWh
* >150kW – ≤250kW: 15p/kWh
* >250kW – ≤5MW: 8.5p/kWh
All these sizes are currently covered by just 2 bands paid at 31.4p for 10kW to 100kW and 29.3p for 100kW up to the top limit of 5MW.
So for large solar farms (usually in the 1MW to 5MW size) this would represent a massive reduction in income and consequent extension to the payback time.
Under the current tariffs a 5MW solar farm could be generating approximately £1.5million a year in FiTs income and this would be reduced to £500k under the new tariff. A 5 year payback period would become 15 years.
DECC are running the consultation on tariffs until 6th May 2011 and the new tariffs are planned to be introduced from 1st August 2011. No adjustment will be made retrospectively to installations with existing FiTs contracts.
You can respond to the consultation here: DECC FiT tariff consultation
They propose that the rates for pv are revised into the following new bands:
* >50kW – ≤150kW: 19p/kWh
* >150kW – ≤250kW: 15p/kWh
* >250kW – ≤5MW: 8.5p/kWh
All these sizes are currently covered by just 2 bands paid at 31.4p for 10kW to 100kW and 29.3p for 100kW up to the top limit of 5MW.
So for large solar farms (usually in the 1MW to 5MW size) this would represent a massive reduction in income and consequent extension to the payback time.
Under the current tariffs a 5MW solar farm could be generating approximately £1.5million a year in FiTs income and this would be reduced to £500k under the new tariff. A 5 year payback period would become 15 years.
DECC are running the consultation on tariffs until 6th May 2011 and the new tariffs are planned to be introduced from 1st August 2011. No adjustment will be made retrospectively to installations with existing FiTs contracts.
You can respond to the consultation here: DECC FiT tariff consultation