FiT change from 18th October

[TedM]

From the 18th October DECC are removing the 12 month rule on extended systems. The Feed-in Tariffs (Specified Maximum Capacity and Functions) (Amendment No.3) Order 2011

Up until then if a system gets extended within the first year the extended system enjoys the same tariff as the original - assuming you don't go over one of the tariff boundaries.

For any extension to a system after 18th October the extended part will always be treated as a separate system and will get paid at whatever tariff is in force at the time.

This won't make any difference unless the rates change in the intervening period, between the first install and the extension. So watch out as pre and post April installs will be affected (or whenever the rates actually change).

This change closes the loophole that previously allowed savvy solar farm developers to install a small system to beat the review deadline, and then later extend it and still get the high rate.

 

[Graeme Harrold]

What was the loophole regarding the deadline for 50kW installs. WIth an uncertain and impending (possibly early) change to the FIT rates, I have a coulple of schools in the process of raising "matched funding" for their installations. The are currently working to a change taking place in Mar/Apr 2012, and could have the rug pulled should the rates be reduced early...?

 

[TedM]

The loophole allowed a developer to install a small system, register it for FiTs, and then extend it to a larger size size within the following 12 months and have the original rate apply to the whole system. - assuming you don't go over a band threshold.

So, for a stand-alone system, the tariff that was in force at the first install date would apply to the entire system. I believe that this allowed a few people to get around the fast track review tariff change that came in from 1st August for PV systems over 50kW. (I posted about this loophole back in March when the fast track review was first announced - http://www.electriciansforums.net/p...nce-terms-50kw-pv-fits-review.html#post253658 )

So the 12 month rule for extensions is effectively removed from 18th October onwards. But it will only have any effect if there is a tariff change between the two events.

 

[Worcester]

@TedM, for clarification

So that means that (in the same way as the large schemes 'loophole was closed) if you install 2.5kWp this October and in May 2012 'upgrade' it to 4kWp, in the old shcme of things the whole system would have been banded at 43.3p, now it means that the 2.5kWp will be at 43.3p (plus inflation) and the extra 1.5kWp will get whatever the current rate in May 2012 is for 'new' systems, - previuosly you had until October 2012 to do that upgrade and it would all have been at 43.3p

It also means that if a commercial install is 'thinking' about doing a 40kWp system there is now no benefit in installing an 11kWp system to 'preserve / reserve' that rate for 12 months

So if rates do go down by 30% or so in the strategic review, any upgrade / enlargement would have to be done before that rate comes into effect (or take the new lower rate)

 

[TedM]

Were you asking for clarification or helping me clarify it?

In either case, your description of what can/will happen is correct.

 

[BruceB]

Not that I would condone it, but I imagine some might be tempted for mcs/fit purposes to commission early at the full size albeit with a huge proportion of the panels temporarily not connected.

 

[Worcester]

@TedM

Bit of both, thanks