Renewable Energy

The Department for Energy & Climate Change (DECC) announced the changes to be made to future support for the renewables sector before Christmas.  This followed the consultations undertaken in July (See July’s article).  Although Feed in Tariffs (FiTs) have still received significant cuts, the smaller PV installations (e.g. rooftop) have not been cut by as much as was initially proposed following a lot of opposition during the consultation.  Sub 10kW solar schemes from 1^st January 2016  will receive 4.39p per kWh as opposed to the 1.63p per kWh proposed in the consultation.  These schemes currently receive 12.03p per kWh.  In the main both solar and wind will receive higher FiTs than in the initial proposals but there will be lower rates than in the consultation for hydro schemes.

The consultation also proposed the end of pre-accreditation, where developers could ‘lock’ into a fixed level of FiTs whilst grid connection, planning, finance and construction continues.  This is particularly important for large schemes which can take a while before completion.  Following the consultation pre-accreditation has been reinstated for solar PV and wind generators over 50kW and all hydro and anaerobic digestion generators.

With regards to the Renewables Obligation (RO), as proposed, this will end for solar PV projects under 5MW as from 1^st April 2016.  Those over 5MW have been ineligible since 1^st April 2015.  Although there will be a grace period for those who have made a significant financial commitment before 22^nd July 2015.  In addition, the removal of ‘grandfathering’, where additional capacity is supported at the same rate as existing accredited installations, remains in place as of 22^nd July 2015 (unless significant financial commitment can be shown before this date).  The Government’s full review of the FiTs can be found at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/486082/FITs_Review_Govt__response_Final.pdf