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Next wave of solar PV FIT changes announced

DECC has today issued its response to the "Consultation on Comprehensive Review Phase 2A: Solar PV cost control" and confirmed that the next wave of changes to solar PV FIT tariffs will take effect on 1 August 2012.

The headline points from the consultation are:

• The generation tariff for small scale installations (<4kW) will be cut from 21p/kWh to 16p/kWh

• Generation tariffs for larger installations are also to be reduced

• The rules regarding multiple installations have been relaxed so that organisations with more than 25 solar PV installations will receive 90% of the standard applicable generation tariff (the percentage reduction from the standard tariff increased from the current 80%)

• The changes to the tariffs are to take effect for new solar PV installations from 1 August 2012 as opposed to the proposed date of 1 July 2012

• Generation tariffs will fall every three months, depending on market conditions

• The export tariff (for selling electricity back onto the grid) is to be increased from 3.2p to 4.5p/kWh

• All tariffs will continue to be index linked with the Retail Price Index

• The lifetime of the FITs scheme (over which payments will be made) is to be reduced for new solar PV installations from 25 to 20 years.

TLT's Renewables team is actively involved in a significant number of projects under the FITs regime, particularly solar PV. For more details on how we can assist you, please contact Maria Connolly.

For further information on the consultation response please see Related links.

This publication is intended for general guidance and represents our understanding of the relevant law and practice as at May 2012. Specific advice should be sought for specific cases; we cannot be held responsible for any action (or decision not to take action) made in reliance upon the content of this publication.

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