mulitple installations rate

[finchy]

Hi Chaps,

Just wondered if anyone could clarify what the legal definition of Multiple installations, on a commercial installation with complex web of ownership eg where a company has different sites registered as a seperate business but are owned by one ultimate Company ? I have been reading through all the DECC literature but can't find anything in detail.

Many thanks

 

[TedM]

There isn't much detail given by DECC. The consultation document says:

i.e. where a single company or individual receives FITs from PV installations on more than one site

and

We also propose introducing new multi-site tariff rates for “aggregated” projects. These are schemes where a single individual or organisation receives FIT payments from more than one PV installation located on different sites.

and

51. We also propose introducing a new “multi-installation” tariff rate associated with each solar PV tariff band that would apply to any solar PV installation where the FIT generator or nominated recipient already owns or receives FITs payments from one or more other PV installations, located on different sites. Specifically, we propose that the multi-installation rate would apply:-
(i) if the FIT generator (whether or not the person in receipt of FIT payments) is either the FIT generator or the nominated recipient for FIT payments for any other solar PV installation; and
(ii) if the nominated recipient for FIT payments (where there is one) is either the FIT generator or the nominated recipient for FIT payments for any other installation.

This suggests that if there are multiple companies (maybe even one per property) then the 20% reduction in tariff would not apply.

Loopholes such as this, which would depend on the exact wording DECC might use in the updated legislation, was one of the points I raised in my consultation response.

 

[finchy]

Cheers Ted, Makes it difficult really as I have a customer for owns different sites through seperate companies but under a Group Holding structure. I can not say to our customer how I read it but when it comes to registering they deem it as Multiple...

 

[TedM]

I don't think it will be any clearer until we get the new legislation - or at least the consultation response - from DECC.

 

[finchy]

You can probably tell I've got a very large multiple installation. Obvioulsy now the Government has knocked business/consumer confidence I need to have concrete facts, caveat will be needed subject to Consulatation response.

 

[TedM]

If they are separate legal entities then I can't see how DECC would word the legislation so that the 80% rate applied. Also the contract for FiTs would be between those separate legal entities and the suppliers, so it is difficult to see how it could be policed. If it is implemented then I imagine there will be a declaration to sign annually, similar to that currently required from off-grid FiTs generators, with penalties for anyone caught.