REAL email on FIT changes

[Somecamel]

Was just reading the email sent over from REAL, in it they talk about the digressions etc but oddly they refer to a small system between 0-10kw

Is it 16p now for system between 0-10kw, feel lost now with all the changes.

The Government's consultation response also set out the cost reduction mechanism that will govern the way Feed-in Tariff rates can be changed in the future.• tariff rate changes are scheduled to take place every 3 months - January, April, July and October each year;
• the tariff rate changes will be determined by the volume of deployment in the specified 3-month period;
• the tariff rate changes will be announced 1 month following the period in question and implemented 2 months later;
• if the threshold is breached a tariff rate reduction (from 3.5%-28%, subject to deployment) will be announced at the end of the following month, and come into effect two months later;
• if the deployment trigger is not reached, then no tariff rate reduction will take place;
• two successive quarters without a tariff rate reduction will be followed by a guaranteed tariff rate reduction of minimum 3.5% in the third quarter.
• there are three different degression bands
 domestic (0 - 10kWp)
 small commercial (10 – 50kWp)
 large commercial (over 50kWp and stand-alone).
(The tariff rate degression in each band is not linked to the deployment rates in the other bands.)

 

[Gavin A]

I think that the degression rates for both the 0-4 and 4-10 kW bands is based on the total installed across both bands.

ie if 75MW of 0-4kW installed + 75MW of 4-10kw installed = total of 150MW for the purposes of determining whether the degression for both bands will be set at 0%, 3.5%, 7%, 14% or the industry killing 28% maximum quarterly degression.

I trust this is clear as mud?

 

[Somecamel]

Fair enough

 

[Gavin A]

I could of course be wrong about this, as frankly I'm getting a bit bamboozled with the sheer volume of changes to absolutely everything that's going on at the minute.

it's almost like they're deliberately trying to force half the industry out of business or something...

 

[TedM]

You're right, Gavin. The degression bands are 0-10, 10-50 and over 50 kW. And it looks like just over 100 kW (probably around 120-130 kW) will be installed in the current quarter in the 0-10 kW band which will mean a 3.5% drop in tariff from 1st November.

 

[moggy1968]

yes, I was confused as well, err, and still am!!!
so whats the rate for 4.1-10kW?

 

[Somecamel]

I know the 1-4kW is going to be 16p but anything above that now I'm lost

 

[TedM]

Rates from 1st August to 31st October - all now on a 20 year term:



And export will be 4.5p.

 

[Somecamel]

Thanks Ted, Printed and now stapled to my head

 

[finchy]

and the chaps pre 1st August will all get the new export rate of 4.5p ?

They cant discrimate export rates because of favarable FIT rates ........

 

[Gavin A]

and the chaps pre 1st August will all get the new export rate of 4.5p ?

They cant discrimate export rates because of favarable FIT rates ........

no, the new export rate only applies to after august 1st installs.

 

[finchy]

hmmm and the reasoning was .....!

There shouldnt be a link with wholesale export rates with FIT rates !

Even if they say its a new deal export rates should be the same across all technologies and FIT deals.

The export amount recieved by customers come from the Energy companies where as the FIT comes from the Climate Levy. So how can the justify allowing the energy companies pay well under wholesale energy costs for Pre 1st August customers. FIT's have nothing to do with energy companies just administration for which the get paid.

I get it, is to make up for the loss in income because customers are using free energy, thats morally wrong ...free !!!

 

[finchy]

I guess Ted has read the energy act, to ensure they aren't pulling another fast one !!

 

[Gavin A]

I'd expect the reasoning to be something to do with aligning it with ROCs, as some levels of FITs are now going to be in the same ball park as ROCs, as well as preparing the ground for winding down the FIT scheme towards the point where FITs aren't needed.*

It's also an accounting exercise as it moves more of the costs from the FIT's scheme into the more general costs of buying electricity.

IMO the export rate was always too low, and this is probably a step in the right direction, although it does further complicate things.



*IMO this point is still a fair way off, and depends on electricity prices rising beyond a certain point as well as further cost reductions in the industry (which in turn depend on a growing solar PV market, and reduced red tape).

 

[SRE]

Makes the argument for going over 4kwp on big roofs easier with the new rates. That could be interesting in the domestic and small business market.

 

[finchy]

You think so SRE .... I'm still working on my new FIT model ...

 

[moggy1968]

Makes the argument for going over 4kwp on big roofs easier with the new rates. That could be interesting in the domestic and small business market.

Yes, I agree. the rate on 4-10kW looks almost generous in comparison!

 

[LightGEN]

it's almost like they're deliberately trying to force half the industry out of business or something...

I really do hope so...there are way, way too many MCS registered PV installers for the size of the market, as it stands, if 75% were to give up and go away, it would me a much better place to be!

 

[moggy1968]

yes, thanks to PE and NICEIC!

 

[finchy]

Greg called it the Gold Rush !

I'm off the plunder my treasure errrr !!