Here we go again- Feed in tariff cuts to come in weeks

[njcuk]

Yes, I meant they have not issued the consultation yet not that they have not pre-announced it! It's certain that the FiT will be changing but no more detail than that.

Thanks Ted.

So to clarify, at present, yesterdays deadline does not effect the FITs for installations that take place now? Just RO ones?

 

[Worcester]

Thanks Ted.

So to clarify, at present, yesterdays deadline does not effect the FITs for installations that take place now? Just RO ones?

Yep, that's what the consultation document currently covers.

Expect a consultation document on FIT within the next few weeks, absolute latest sometime in September.


I expect that all new build except self build will be removed as it is now a requirement to include some form of renewables for any buildings getting planning permission after 25th March this year. - In line with the DomRHI.

Other changes, the EPC of D was a cost control measure, though there is a possibility that will be removed, or the band for buildings with a lower EPC revised upwards.

Whatever they do will cause a spike in installations. in the smaller bands - not so easy to spike in the larger ones, and they removed that opportunity for the spike there by closing the pre-accreditation.

 

[TedM]

Yes, that's right. It is just changes to the RO that have been announced so far. But expect consultation on changes to FiTs to be coming soon.

 

[njcuk]

Ok, thanks.

I think the code changes next year for new builds. Not sure what is proposed though.

 

[Worcester]

Ok, thanks.

I think the code changes next year for new builds. Not sure what is proposed though.

It was sneaked in with the Deregulation Act and appears to have an immediate implementation date - they also deleted the code for sustainble homes at the same time.

Most sections of the act had an implementation date, if they didn't, they were deemed to have immediate effect. This particular section didn't have an implementation date! The interpretation seems to be somewhat different though
Deregulation Act and the Code for Sustainable Homes | Planning for Sustainability

 

[TedM]

Also worth noting is that if you have planning permission to build a new home that includes a Codes for Sustainable Homes condition you can now apply to the LA planning dept to have the condition removed. Lots of people doing that now.

 

[Worcester]

So there you have it Green Deal energy efficiency scheme scrapped as Government pulls funding - Telegraph

(Thanks JulianC)

Green Deal goes as well - what to follow - Crystal Ball here: one scheme that encompasses it all FiT, DomRHI, Energy Efficiency, one whole new system launching April 2016

 

[Dave-geo]

I have been reading through the DECC consultation document (I suffer with insomnia!) and do not understand what will still qualify for the subsidy. The exact wording is :-

[FONT=&amp]“Grace periods to the closure of the Renewables Obligation to solar PV[/FONT]
[FONT=&amp]24[/FONT][FONT=&amp]. We propose to offer grace periods equivalent to those offered when the RO was closed to new solar PV capacity above 5MW.[/FONT]

[FONT=&amp]25[/FONT][FONT=&amp]. Accordingly, new solar PV projects of 5MW and below will continue to be eligible to enter the RO after 31 March 2016 (until the full closure of the RO on 31 March 2017) if one of the following criteria is met:[/FONT]

[FONT=&amp]a[/FONT][FONT=&amp]) Preliminary accreditation under the RO has been obtained for the station on or before 22 July 2015. Evidence of preliminary accreditation should be provided to Ofgem with the application for accreditation, which must be on or before 31March 2017[/FONT]

[FONT=&amp]b[/FONT][FONT=&amp]) The following evidence is provided to Ofgem demonstrating that significant financial commitments have been made on or before 22 July 2015 in respect of the project. The evidence should be provided to Ofgem with the application for accreditation, which must be on or before 31 March 2017:[/FONT]

·[FONT=&amp]A grid connection offer and acceptance of that offer, both dated no later than 22 July 2015;
[/FONT]
·[FONT=&amp]A Director’s Certificate confirming ownership of the land, lease of the land, an option to lease or purchase the land, an agreement to lease the land or that the developer or a connected person[/FONT][FONT=&amp]7 [/FONT][FONT=&amp]is party to an exclusivity agreement in relation to the land as of and no later than 22 July 2015 by the developer or proposed operator of the station;[/FONT]

·[FONT=&amp]Confirmation that a planning application had been received by the relevant planning authority in respect of the project no later than 22 July 2015 or a declaration that planning permission is not required”[/FONT]

In section 25 it says if one of the following criteria is met but then under section b it lists three items. Would you need all three items listed in b or would just an agreed grid connection be ok?

Any ideas?

 

[Gavin A]

That's just for renewables obligation certificates ie for ground mount systems up to 5MWp, they've not released any info about any potential Feed In Tariff cuts.

The bit they have consulted on for FIT is the removal of the preliminary accreditation route for anything above 50kWp (not available for anything below that anyway) which to me looks to be a prelude to announcing a cut some or all of the bands for above 50kWp Feed In Tariff.

Reading between the lines, my feeling is that they'll target the standalone segment of the feed in tariff, as they'll expect a bit switch from ROCs to FIT for the ground mounted systems.

The government's repeatedly stated aim is to target support to roof mounted PV, and the install rates for the big roof mounted systems above 50kWp are actually pretty low at around 100-130 installs per quarter (last few quarters of 2014, the 2015 figures haven't been properly processed yet). They probably could justify cutting that a bit, as I think the ofgem backlog might have meant that there have been quarters where it should have been cut more than it was because the installations weren't processed in time, but hopefully nothing too major.

If they are going to cut it significantly I'd prefer it if they cut the duration of the FIT period rather than the up front rate, as payback time is more important than overall percentage return IMO.

 

[Gavin A]

in terms of the ROCs cuts though, basically that's saying that unless a system was already registered before this announcement for the preliminary accreditation, then end of March 2016 is the final cut off for any solar PV system to be eligible for ROCs.

 

[TedM]

The DECC proposal is that there are 3 possible ways for a project to qualify for the extra 12 months grace period to register for ROCs. Any one of these may apply:

1. Preliminary accreditation
2. Significant financial committment
3. Grid connection delay

The evidence you have to present to OFGEM for each of these is:

1. Preliminary accreditation already granted on or before 22 July. You have to have OFGEM paperwork.

2. Showing a significant financial commitment to the project on or before 22 July. You have to provide evidence of all following 3 items to OFGEM:
a) a grid connection offer and acceptance dated on or before 22 July
b) Director's Certificate confirming land agreement in place dated no later than 22 July
c) Planning application received on or before 22 July

3. Evidence of a delay to a planned grid connection, being 3 items:
a) grid connection agreement with a delivery date no later than 31 March 2016
b) declaration that commissioning would have been complete by 31 March 2016 except for delay to grid connection
c) DNO confirmation that delay was not the fault of the generator/developer

So you have to have either 1 or 2 (a,b and c) or 3 (a, b, and c)

A grid connection offer on its own is not enough.

[edit - formatting grrr!]

 

[Dave-geo]

Thanks Ted
That is exactly the information I wanted.
Dave

 

[The Solar King]

Expect FIT review to be launched possibly last week in August. Banding review already announced to preempt swap from ROs.

There are already questions over the legality of the move on Grandfathering.

Helpful background reading is also the think tank Policy Exchange document 'The customer is always right, Putting customers back at the heart of UK Energy Policy', which can be downloaded here:
The Customer is Always Right: Putting consumers back at the heart of UK energy policy
Like it or not this is hugely influential in Government thinking. Won't bore you with detail of relationship between this organisation and current Government.

Data used in it is out of date and several assumptions used in analysis are very naive. Never the less, they will be extremely damaging.

This and much else is being countered as best the industry can, including pointing out just how affordable solar is in terms of the Levy Control Framework. There has been no release of information showing calculation for the projected overspend by 2020. Interpret that as you wish.

There are issues for HMG with subsidies for non renewable technologies. Ever wondered why no new gas fired power stations are being built? Haven't even mentioned the N word, but looks like projected costs for Hinckley Point are spiralling which would mean a much higher CfD than that currently agreed.

The FIT review may be self fulfilling. When announced, it may lead to a market rush and disruption, the last thing that is needed. This in turn could lead to a super degression of the tariff in January.

Needless to say there is considerable dialogue over these issues.

If you are not a member of the Solar Trade Association, I would urge you to join. Individually there is little you can do. Collectively there is a huge amount, and this is already happening. Please don't leave it to others to protect the industry.
Solar Trade Association | The UK's leading solar industry voice

 

[SibertSolar]

Spotted this earlier, not sure how bona-fide it is but....

http://cleantechnica.com/2015/07/31/jaw-dropping-news-in-the-solar-versus-fossil-fuels-debate/

 

[jason121]

I had this sent to me today
There has been a lot of recenttalk in the industry regarding the impending subsidy cuts: here's a quicksynopsis of what it means to you:

• It is likely there will be a 3.5% FIT cut 1st October for sub 10kw installations.
• DECC have announced a consultation as it is likely no new large solar projects will be funded in UK under ROC scheme
• As ground mount installs diminish this will potentially cause a surge for rooftop installs under the FIT. However, the rules specify that if more than 130MWp are installed under the FIT 50+ kWp band in any one quarter, the FIT will reduce by 28%. This will make such installations largely financially nonviable in the future.
• A review will take place "later in 2015" on the FIT scheme, which will almost certainly result in reductions in larger commercial installs in Jan 1st and April 1st 2016
• implications are that smaller residential will continue to be supported but almost certainly at lower rates

 

[The Solar King]

Please see my new post in the Green Lounge.

 

[TedM]

The 1st October PV tariffs were published about 3 weeks ago. There is a 3.5% drop for all bands up to 50kW.

https://www.ofgem.gov.uk/publicatio...ff-scheme-tariff-table-1-october-2015-pv-only

 

[AndrewMgan1976]

So is the drop in FiT only for new installations? Existing tariffs aren't affected

 

[TedM]

Yes, only new installations or extensions. Existing systems get a tariff increase every April in line with the previous year's RPI.

 

[TomBradley]

If you have time, respond to the DECC consultation which closes tomorrow... https://www.gov.uk/government/consultations/changes-to-feed-in-tariff-accreditation

Even if it's just a few lines, it will help DECC see how many companies and traders oppose the cuts.

We've got a blog trying to keep track of all the changes in summary... Energy Policy in the UK - a blog. Let us know if there is anything we should add or remove.