T
The Solar King
I am Sure the STA and the REA will not mind me posting this copied and pasted from a newsletter.
I will be after you all in the New Year as new members of The Solar Trade Association. We can fight better if we are bigger. Watch this space.
Update from Greg Barker to Stakeholders - 12[SUP]th[/SUP] December 2011
STA and REA individuals attended a meeting at DECC and produced the following bullet points from the meeting. We realise these will not give absolute clarity, given that we were in a consultation, but we felt we should share them with the membership. They have been checked by DECC officials and they are happy that this note be distributed.
The Minister’s overriding concern is that there is to be life for the industry beyond 1[SUP]st[/SUP] April 2012.
In January, as part of the Phase II consultation, DECC will announce a “cost control mechanism” which might kick in quickly after 1[SUP]st[/SUP] April 2012.
DECC will also put out a statement clarifying the certainty of 21p as the minimum tariff for householders between now and 1[SUP]st[/SUP] April 2012.
Cost control mechanisms
DECC have considered 4 options
Need to give industry the predictability and build it in to the mechanism.
The outcome is likely to be a combination of 1, 2 and 3 above.
Baseline degression could be in the region of 10% every six months, which would get down to 11.1p by 1[SUP]st[/SUP] April 2015 for 4kWh, and to 9p or below (i.e. 2 ROCs) by 2013 for larger schemes and by 2014 for smaller schemes.
But if deployment rates go up then it could trigger the next step sooner – with 3 months’ notice.
Other points made by DECC officials at the meeting
Their starting point is the ambition set out by Ed Miliband (which delivers a cumulative 833 MW of PV capacity by 2015).
This will be reviewed taking into account progress to date and the impact on consumers.
The steeper the tariff degression, the better the argument/case for solar.
A review of the export tariff will be part of the final package.
Distributed generation strategy is looking at how solar can play a role.
They will look again at community level schemes within the degression model to be set out and will consult on what a community scheme really is and what is a legitimate expectation for such schemes.
Open to suggestions for a secondee from the industry to work with DECC, however there is no budget to go with this (so likely industry would have to fund?).
DECC is looking to issue guidance to local authorities on the Green Deal in the revised Home Energy Conservation Act.
Energy efficiency
Genuinely listening on how the link with energy efficiency should be handled, so send in your comments to the consultation.
They are looking for constructive, helpful arguments as to how energy efficiency could be factored in (provided this does not threaten the budget too much – i.e. there is a recognition that the slowing of demand due to energy efficiency requirements is helpful – but it should not be too severe)
There is going to be no join up, financially, between the Green Deal and FITs.
I will be after you all in the New Year as new members of The Solar Trade Association. We can fight better if we are bigger. Watch this space.
Update from Greg Barker to Stakeholders - 12[SUP]th[/SUP] December 2011
STA and REA individuals attended a meeting at DECC and produced the following bullet points from the meeting. We realise these will not give absolute clarity, given that we were in a consultation, but we felt we should share them with the membership. They have been checked by DECC officials and they are happy that this note be distributed.
The Minister’s overriding concern is that there is to be life for the industry beyond 1[SUP]st[/SUP] April 2012.
- For the Phase 2 consultation DECC is having to think more creatively.
- There will be a consultation in early January setting out a proposed degression methodology - this will cover tariff degression and timescales.
- DECC is hoping to report on the outcome of the priority decisions from the Phase 1 consultation before the end of January. It will definitely be published by 8[SUP]th[/SUP] February.
- There is an “ambitious trajectory to get to 2 ROCS/MWh for solar”.
- To “lift solar PV out of the ‘nice to have’ category that needs additional subsidy”we “need to get there ASAP”
- The aim is to “deploy at scale and sustainably at a level comparable to mainstream renewables”.
In January, as part of the Phase II consultation, DECC will announce a “cost control mechanism” which might kick in quickly after 1[SUP]st[/SUP] April 2012.
DECC will also put out a statement clarifying the certainty of 21p as the minimum tariff for householders between now and 1[SUP]st[/SUP] April 2012.
Cost control mechanisms
DECC have considered 4 options
- Gradual degression, on pre-planned timescale
- German-style degression, with % reductions linked to the capacity installed
- Frequent reviews
- Rationing or quotas
Need to give industry the predictability and build it in to the mechanism.
The outcome is likely to be a combination of 1, 2 and 3 above.
Baseline degression could be in the region of 10% every six months, which would get down to 11.1p by 1[SUP]st[/SUP] April 2015 for 4kWh, and to 9p or below (i.e. 2 ROCs) by 2013 for larger schemes and by 2014 for smaller schemes.
But if deployment rates go up then it could trigger the next step sooner – with 3 months’ notice.
Other points made by DECC officials at the meeting
Their starting point is the ambition set out by Ed Miliband (which delivers a cumulative 833 MW of PV capacity by 2015).
This will be reviewed taking into account progress to date and the impact on consumers.
The steeper the tariff degression, the better the argument/case for solar.
A review of the export tariff will be part of the final package.
Distributed generation strategy is looking at how solar can play a role.
They will look again at community level schemes within the degression model to be set out and will consult on what a community scheme really is and what is a legitimate expectation for such schemes.
Open to suggestions for a secondee from the industry to work with DECC, however there is no budget to go with this (so likely industry would have to fund?).
DECC is looking to issue guidance to local authorities on the Green Deal in the revised Home Energy Conservation Act.
Energy efficiency
Genuinely listening on how the link with energy efficiency should be handled, so send in your comments to the consultation.
They are looking for constructive, helpful arguments as to how energy efficiency could be factored in (provided this does not threaten the budget too much – i.e. there is a recognition that the slowing of demand due to energy efficiency requirements is helpful – but it should not be too severe)
There is going to be no join up, financially, between the Green Deal and FITs.
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