Twiiter @DECCgovuk live with Greg Barker

[Worcester]

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[TD="width: 689, bgcolor: #ccff00"] WorcsRenewables Worcester Renewables
@DECCgovuk There are lots of rumours of massive cuts to the Feed in Tariff for Solar PV in April 2012, what are your plans?
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[TD="width: 689, bgcolor: #ccff00"] WorcsRenewables Worcester Renewables
@DECCgovuk #AskEnergy What is the current timescale for the FiTs Strategic Review?
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[TD="width: 689, bgcolor: #ccff00"] WorcsRenewables Worcester Renewables
@DECCgovuk #AskEnergy rumours abound that the FiTs review is late and that another drop in Feed-in Tariffs will b annouced before Xmas True?
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[TD="width: 689, bgcolor: #ffffcc"] DECCgovuk DECC
clearly big scope to realign tariff with cost, the more we save the more there will be to spread further. i want max takeup 4 money & TLC
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[TD="width: 689, bgcolor: #ffffcc"] DECCgovuk DECC
And by TLC i mean Transparency, Longevity & Certainty for consumers and industry
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[TD="width: 689, bgcolor: #ccff00"] WorcsRenewables Worcester Renewables
@DECCgovuk does that mean FiT rates may change mid year with short notice? #AskEnergy
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[TD="width: 689, bgcolor: #ffffcc"] DECCgovuk DECC
Massive fall in solar costs & big take up is good news but FITs need to be more dynamic to track industry. Comprehensive Review out shortly

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Looks like big chnages ahead to me...

"Big Scope" "Dynamic" ...

 

[SolarCity]

If anything occurs that is 'dynamic' then it will seriously harm the industry.

 

[Worcester]

I agree, I think we are in for a seriously turbulent 6 - 9 months.

 

[SolarCity]

I seriously wonder how much thought goes into these kind of things. If anything happens before the end of the March then you'll end up with the biggest boom/bust scenario imaginable:

The whole industry will go crash, bang, whallop and homeowners will end up with shoddily installed systems, with 10 year warranties with companies that go bankrupt by June.

The prices of systems have come down - this is a good thing. The wrong way to look at it would be to say "Great, we don't have to pay as much FITs anymore, lets knock the FIT to 35p at Xmas." as this will create just the kind of scenario that I suggest above. The right thing would be to say "Great, the systems are coming down in price. This won't cost us any more than we originally anticipated, it will simply mean that uptake in the industry will be quicker. Lets give the industry 12 months breathing space and announce the FIT reduction for April 2013 in April 2012."

 

[TedM]

'dynamic' and 'certainty' - with FiTs you can have one or the other but not both.

 

[SRE]

Solar portal is quoting 19th october for review being published and 30 - 50% cuts in Fit :89:

 

[SolarCity]

Was this the article you were referring to?

The new FiT, prices and the future for solar in the UK: Part 1 - Solar Power Portal

What a disaster.

 

[SRE]

Yep, we've booked for a 2 week hol in mid november since Feb ( we thought it would be quiet) I'm seriously considering postponing it .....

 

[SolarCity]

I suppose I'll be cancelling my trip to watch Bruges vs. Birmingham also.

 

[SRE]

Anyone worked out how to commission in the dark???

 

[SolarCity]

Anyone like to speculate when the changes could come into force?

 

[SRE]

January 2012, they can't possibly implement it before then.

 

[SolarCity]

You wouldn't think so. But they are showing themselves to be reckless to say the least. I wonder how many firms will pack it all in?

 

[Worcester]

40 days consultation remember, however the House of Lords could throw it out, then he'd have to come back with another..

 

[SRE]

14th December - implement it in January/February once the lip service has been paid ??

 

[TedM]

I believe that if it is simply to be a change to the tariffs then the House of Lords would not be involved as there is no need to change any legislation - just an update to the Standard Conditions which are simply signed off by the Minister of State at DECC.

I think that even a public consultation period would be optional if DECC declared that the changes were needed in extremis to comply with EU regs.

 

[MorganPVI]

At the end of the day the DECC have run the figures and decided there is no more money in the pot and they're damned if they are going ask for or allocate new money. They've also run the payback figures and discovered the returns of PV are too high and as FiT is too generous, the only way to discourage people signing up, balance the books in the current state and open to keep the scheme new entrants is by limiting demand. Therefore expect the FiT to be slashed.

If you run the numbers then a cut to 30p would be about the best possbile outcome, personally I think it could go to 25p.

 

[UK PV Systems]

I was always under the impression that there was not actually a 'pot' of money. I thought the FITs were coming from the little charge to everyones energy bill. hence why energy providers pay the customers??

if there is a fund then the government needs to seriously consider its options and not take drastic cutting measures just because how successful uptake has been. A better method would be to cut the FIT down year on year starting from March as previously set out, but be more dynamic compared with uptake in that year and system cost. that way ROI etc and payback will stay fair.

or

First come first served kind of thing for example batch of 1MW at highest FIT then next batch 1MW installs will qualify for next band of FIT etc etc...

Green Deal will fall flat on its face before its even begun due to customer and industry perception, if they slash the FIT too much.

 

[TedM]

Whilst the cash for FiTs does come from a small levy on all electricity customers, the budget for the total amount is controlled by DECC under strict HM Treasury rules (explained here - http://hm-treasury.gov.uk/d/control_framework_decc250311.pdf )

The announced budget figures for FiTs were in the DECC fast track review consultation document - http://www.decc.gov.uk/assets/decc/...ts-fast-track-government-response---final.pdf - bottom of page 4.

The total spend allowed for 2011/12 is £80 million and £161 million for 2012/13.

 

[Graeme Harrold]

Reading this Im glad Im an electrician first and not relying on installs......not good reading