DECC has today laid before Parliament draft licence modifications which make provision for a reduced tariff rate (from 1 April 2012 onwards) for new solar PV installations. There will be an eligibility date on or after 3 March 2012 under the Feed – in Tariffs scheme (FITs).
The DECC Minister Greg Barker has stated that the level of FIT’s must be reduced to avoid the whole of the FIT budget from being overspent. The Government are appealing against a court ruling that has challenged their December 2011 reference date. The judgement of the Court of Appeal is awaited, but today’s announcement is a contingency that will bring the 21p rate into effect from April for installations from 3 March 2012.
The Government intend to press ahead with the appeal as they believe that the industry needs certainty and there is a need to protect the budgets for the FIT’s.
The consultation on the FIT’s scheme closed on 23 December 2011 with over 2,000 consultation responses received which are being analysed by DECC. The outcome of the consultation is to be announced by 9 February 2012, in time for any resulting legislative changes to come into effect from 1 April 2012. The Government announcement will be accompanied by reform proposals for the next phase of the comprehensive review of the FITs scheme, which will be the subject of a further consultation.
Link to full story: http://www.decc.gov.uk/en/content/cms/news/fits_jan12upd/fits_jan12upd.aspx