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Author Topic: Apparent U-turn on FITs? Deadline 1st April reinstated.  (Read 770 times)
Ivan
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« on: January 01, 2012, 01:00:44 AM »

Nigel kindly alerted me to this one:

http://www.clickgreen.org.uk/news/



The UK Government appears to have reinstated the April 1 deadline for a cut in the solar PV Feed-in Tariff rate in a new renewable energy report submitted to the European Commission this week.

The Government's apparent u-turn was buried deep within the “First Progress Report on the Promotion and Use of Energy from Renewable Sources for the United Kingdom”, which was published yesterday.

The report states that following the launch on October 31 of a consultation to reduce the size of cash subsidies for solar PV, the changes are now “proposed to be implemented from 1st April 2012”.

The DECC consultation had originally proposed a December 12 cut-off date, with all installations after this date allowed a temporary window of the higher 43.3p/kWh rate, a move which was ruled unlawful by the High Court last week.

This week's DECC report adds: “The objective of FITs is to incentivise the deployment of small scale low carbon electricity generation by individuals, householder, organisations, businesses and communities. It supports solar photovoltaic, hydro, anaerobic digestion and wind projects up to 5MW and microCHP installations up to 2kW.

“Following nearly three times as much solar PV as originally projected registering for the FIT, and a fall of at least 30% in PV costs, the Government reduced tariffs for new 50kW to 5MW and all stand-alone PV installations from 1st August 2011, and launched a consultation on 31st October 2011, following which new solar PV tariffs for smaller-scale installations are proposed to be implemented from 1st April 2012.

“A second consultation will be published around the end of 2011 to include proposals for new tariffs for non-PV technologies.”

The report was published on December 29 to update the European Commission on the UK's ambitions to achieve its low-carbon energy goals with a target of supplying renewable energy to meet 15% of demand from across the electricity, heat and transport sectors by 2020.

Its release coincided with a second report that revealed more evidence of the economic benefits of renewable energy as Cabinet Secretary Chris Huhne reaffirmed the coalition’s commitment to meeting EU low-carbon targets.

Latest research from DECC shows that so far this financial year, companies have announced plans for almost £2.5billion worth of investment in renewable energy projects in the UK, with the potential to create almost 12,000 jobs across the country.

The separate report to the European Commission on renewable energy progress that showed that the UK:

* Achieved a 27% increase in renewable energy consumption from 42.6TWh in 2008 to 54TWh in 2010 - representing 3.3% of total energy consumed.

* Increased wind generation by 46% from 7TWh in 2008 to 10.2TWh in 2010, and in 2010 achieved 5GW of offshore and onshore wind capacity; and

* Saw a threefold increase in the use of biofuels in transport from 1% of total road transport fuel supply in 2007/8 to 3.33% in 2010.

Energy Secretary Chris Huhne, said: “Renewable energy is not just helping us increase our energy security and reduce our emissions. It is supporting jobs and growth across the country, and giving traditional industrial heartlands the opportunity to thrive again.

“Our renewable target is less demanding than other EU member states, but the effect is bringing real jobs and investment.

“I do not want the UK to be left behind by turning our back on the green economy. The agreement to negotiate a global deal secured at Durban has reinforced major nations’ commitment to cutting carbon. We cannot afford to stand alone while the world wises up.”
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SteveH
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« Reply #1 on: January 01, 2012, 01:04:40 AM »

 If true, a great start to 2012... extrahappy
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Preveli, South Crete.
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« Reply #2 on: January 01, 2012, 01:30:46 AM »

Also posted here http://www.navitron.org.uk/forum/index.php?topic=16061
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8.46kWp solar PV - 169° - 40° slope - 53°N.
M
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« Reply #3 on: January 01, 2012, 07:58:07 AM »

Can I be a little controversial here.

Given that the great FITs rush of 2011 is now over, and things have settled back down a little, wouldn't it be more reasonable to introduce some sort of intermediary amount now (even today), perhaps 30p. I know this might seem like pandering to anti subsidy folks, but any ammunition they are given to argue greed, and freezing grannies paying out to the rich, could come back to haunt PV.

Sadly this is as much about PR as it is PV, until subsidies are reduced further or removed entirely.

Please note, as you may or may not be aware from the 'PV capitalists rejoice ....' thread, I'm uber enthusiastic about PV's future potential, and its border line financial viability right now for 20kWp+ systems. So I'm not bashing, just trying to keep everyone sweet, so nothing comes back to haunt us later.

Cheers.

Mart.
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Ivan
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« Reply #4 on: January 01, 2012, 07:54:24 PM »

I think it's a matter of what's legal and what isn't - and the loss of confidence in the government which is the main issue at present, rather than the financial aspects.
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davec
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« Reply #5 on: January 03, 2012, 06:19:32 PM »

Sorry, maybe I'm alone in being all confused but could someone who knows the score please give me a reality check... the way I've read the situation it's:-

Up till the recent movement of goalpoasts, I think we had an arrangement where you got 43p per unit till 31-Mar-2012; thereafter you got 35p per unit.

Then, they changed things and till 12-Dec-2011, you got 43p per unit; thereafter you get 21p per unit but only if you have class-C insulation; otherwise you get 9p per unit.

Now, this U-Turn means what? If I install a PV system before 31-Mar-2012 do I get 43p per unit? What about the class-C insulation rider? Then what happens from 01-Apr-2012, is it the 21p / 9p formula or the original 35p? Can anyone fill me in, please???
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wookey
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« Reply #6 on: January 03, 2012, 06:27:37 PM »

No-one is really sure dave c.

If you install before April you _might_ get 43p in perpetuity, or you might only get it until April. Very hard to say. The class-C insulation thing won't apply to installs done before April.

Perhaps the only thing we can say is that you almost certainly won't get a worse deal on installs done now than installs done after April, so if you were going to anyway, now's as good a time as any. You may get a good price if installers are hungry for work, or at least it done quickly.


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Wookey
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« Reply #7 on: January 04, 2012, 09:01:51 AM »

Thanks Wookey. Sounds like the govt. have decisively fogged the issue... I sympathise with the installers trying to make business in the midst of this sort of fear, uncertainty and doubt.

My renovation project _may_ have the roof ready to take panels by April and I _might_ decide to fit 3Kw or _maybe_ just 1.5... could you quote me, please? Arf, arf, a prosperous new year to all!
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