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22/03/2011 16:44:35

Energy departments decision on Feed-in Tariffs provides 'certainty'



The announcement by the Department of Energy and Climate Change (DECC) that the fast-track review of Feed in Tariffs (FiTs) will close on the 6th May 2011 provides more certainty for farmers and landowners embarking on Solar Photovoltaic (PV) schemes and gives welcome news in connection with Anaerobic Digestion (AD) scheme under 500kW . The DECC has proposed new reduced tariff rates for PV over 50kW as expected by the industry (the rates for schemes below 50kw are unchanged) but at the same time DECC has enhanced the rates for AD projects up to 500kW. All the changes will be announced in July with the aim of implementation as of 1st August 2011.

A comparison of the Old Band Rates and the New Rates for PV is given below:-
New Bands & Rates Old Bands & Rates
50-150kW - 19p 10-100kW - 31.4p
150kW-250kW - 15p 100kW-5MW - 29.3p
250kW-5MW - 8.5p
Stand Alone - 8.5p Stand Alone - 29.3p

The Rates for AD as of the 1st August 2011 are:-

14p/kWh for installations with a total installed capacity of up to 250 kW
13p/kWh for installations with a total installed capacity of between 250 kW and 500 kW
Both increased from 11.5p/kWh

"In making this announcement, the DECC is reaffirming its commitment to farmers, landowners and private individuals seeking to implement smaller PV installations. Those companies who were planning more commercial projects will be disappointed by the 8.5p Band Rate for 250kW-5MW installations However, the lower band rates, in terms of percentage, are not so badly affected. PV still remains a good renewable option for generating electricity for large buildings in both the private and public sector".

"The rise in rates for smaller scale AD should lead to an increase in the activity in this sector of the Renewable Energy generation industry. Take up to date has been lower than anticipated. The lift in the rate may now make previously marginal AD schemes economically viable".





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