Feed-in-Tariff (FIT) payments to be cut by March 2016
The government has recently proposed drastic cuts to renewable energy incentives in their latest consultation document, which threatens to close a key part of the scheme to new entrants.
◊ FIT Tariff payments being cut from March 2016
◊ Race to secure renewable technologies supported by the FIT payments before the deadline
◊ Contact us before March 2016 to benefit from the FIT payments
◊ The government’s plans will not affect existing customers
The document said:
“If cost control measures are not implemented or effective in ensuring that expenditure under the scheme is affordable and sustainable, government proposes that the only alternative would be to end generation tariffs for new applicants as soon as legislatively possible, which we expect to be March 2016, while keeping the export tariff as a route to market for the renewable electricity they generate”
What does this mean?
◊ Those who want to have Solar PV installed, and still benefit from the Feed-in-Tariff payments, must do so before the March 2016 deadline.
◊ The Government wants to bring spending on clean energy subsidies under tighter control
◊ The government has periodically been forced to cut the level of payments available to new installations amidst fears the scheme was becoming too popular and was eating into the government’s available clean energy subsidy budget, known as the Levy Control Framework (LCF).
◊ There will be concerns about the market for rooftop solar panels, small-scale wind turbines, and other renewable energy systems supported by the feed-in tariff.
◊ The Fit tariff has driven rapid expansion in the UK’s solar market and a surge in the deployment of microgeneration technologies.
◊ The consultation also sets out plans for a re-banding of which technologies qualify for which tariffs, which would come into effect from March 2016.
Want to find out more?
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Information obtained from the DECC, OFGEM and Business Green.