FiTs legislation updated

[Ted]

Coming into force 30th May 2011

The Feed-in Tariffs (Specified Maximum Capacity and Functions) (Amendment) Order 2011
http://www.legislation.gov.uk/uksi/2011/1181/made

There are three main changes in this:

1. changing the maximum 5MW limit for FiTs to apply to total installed capacity (TIC) instead of declared net capacity (DNC) as in the original legislation.

2. amending the hydro eligibility rules to allow <50kW non-MCS systems until 1st October 2011.

3. rewriting and clarifying the rules on state aid and de minimis aid. Additionally this now imposes cut-off dates for systems where the aid must be accepted before 1st July 2011 and the system must be first commissioned before 1st October 2011. It appears that after these dates that even de minimis aid will now no longer be available to system owners who want to avail themselves of FiTs.

The existing legislation: The Feed-in Tariffs (Specified Maximum Capacity and Functions) Order 2010
http://www.legislation.gov.uk/uksi/2010/678/made

[Justme]

1. changing the maximum 5MW limit for FiTs to apply to total installed capacity (TIC) instead of declared net capacity (DNC) as in the original legislation.

Just for clarity, Does that now mean that is the size of the array as specified by the makers on all sizes of systems less than 5MW?

So all internal inverter & cable losses plus inverter sizes are not taken into account.

[Ted]

The legislation has been reworded so that the maximum size a system can be to qualify for FiTs is now 5MW TIC when it was previously 5MW DNC. This just corrects one of the 'mistakes' in the original legislation drafting.

[DonL]

Thanks once again Ted.
We are pushing ahead with the village hall roof (just waiting for G83 approval) and should easily beat the deadline. This will make it very difficult for other grant aided projects of our type and they'll need to push ahead quickly to beat the deadlines.
A great pity to stop such projects as ours is already creating significant interest and as a result more and more parishioners are showing an interest in installing PV.

[jotec]

Thanks for keeping us up to date.
i don't suppose there is any thing on the horizon for non MCS CHP to go from ROC to FITs at low outputs?
Dick

[sneakyweeone]

Ted I wonder if in terms of the state aid and de minimus part of the order if there is any 'plain English' expmations of these you can point me in the direction of. For example is there a list of permitted grants?

[Ted]

Other than the documents from OFGEM there are no other guides that I am aware of.

The only 'permitted grants' were the LCBP grants that disappeared last year anyway.

As from 1st July you are not able to get any government grant and also qualify for FiTs so the de minimis rules no longer come in to play.

[Ted]

There is a minor update to the FiTs legislation: http://www.legislation.gov.uk/uksi/2011/1655/made

The main point is that the transitional arrangements affecting MCS and small hydro, which allows registration via ROO-FIT, has been extended to 31st March 2012.

[DonL]

Hi Ted
I was giving a brief presentation recently on the village hall PV project and said that it was no longer possible to qualify for FIT's if your project was government grant funded. A member of the group said that this is not the case and that you could still claim FIT's.
Have I missed something?
Regards
Don

[BruceB]

There is a minor update to the FiTs legislation: http://www.legislation.gov.uk/uksi/2011/1655/made

The main point is that the transitional arrangements affecting MCS and small hydro, which allows registration via ROO-FIT, has been extended to 31st March 2012.

Don't know how you tell them they have made a mistake in the legislation, but the note:
"Article 3 amends article 5A of the 2010 Order (as inserted by S.I. 2001/1181) to extend the period of application....."
should read "S.I. 2011/1181"

Regards
Bruce

[Ted]

DonL, it depends where the grant is coming from. If it is from 'public funds' then you must either repay it or not be eligible for FiTs. Possibly the person you were talking to wasn't making that distinction as grants from 'private funds' are OK. This applied for any grants given after 1st July this year where systems had to be commissioned before 1st October.  This amendment is worded:

(3) Subject to paragraph (4), the Authority must not accredit an eligible installation as an accredited FIT installation unless the FIT generator has given notice to the Authority that—(a)no grant from public funds has been made in respect of any of the costs of purchasing or installing the installation; or(b)where any such grant has been made, the grant has been repaid to the person or authority which made it.

(4) Paragraph (3) does not prohibit the Authority from accrediting an eligible installation where a grant referred to in paragraph (3) has been made and not repaid if the grant is—(a)a permitted grant; or(b)a grant other than a permitted grant to which the conditions in paragraph (5) apply.

(5) The conditions referred to in paragraph 4(b) are that—(a)the grant is made before 1st July 2011;(b)the installation is first commissioned before 1st October 2011; and(c)the Authority is satisfied that the making of FIT payments in respect of the installation would be in accordance with a de minimis Commission Regulation.

And 'public funds' is defined as:

a grant made by a public authority or by any person distributing funds on behalf of a public authority;

There are some conditional exceptions (the 'permitted grants'), but these only cover either a grant given before 1st April 2010 or where you can prove that the money is needed to meet exceptional environmental costs such as may be required for some hydro schemes.

So, in general, for an 'ordinary' installation, there are no longer any public grants allowable.

Bruce, 'slapdash' is an appropriate way of describing how most of this legislation is put together. It applies to almost everything I look at. I only hope that it doesn't also apply to the other 99% that I have no interest in - but somehow I doubt that too.

[DonL]

Thanks again Ted.
Don