Feed-in tariffs scheme: Consultation on Comprehensive Review Phase 1 – tariffs for solar PV

Overview

This consultation was carried out by the Department of Energy and Climate Change. In July 2016, the department merged with the Department for Business and Innovation and Skills to form the Department for Business, Energy and Industrial Strategy.

This consultation invites comments on the Government’s proposals for the tariff levels available for renewable electricity generation from solar PV installations of 250kW or below under the Feed-in Tariffs scheme (FITs).

We also propose prioritising energy efficiency by linking PV tariffs to specified minimum energy efficiency requirements from 1 April 2012. We are also proposing new multi-installation tariff rates for aggregated solar PV schemes, applying to new installations with an eligibility date after 1 April 2012.

This is the first of two consultations on the comprehensive review of FITs that was announced at the start of the year (separate from the fast-track review of large scale solar PV, which is now complete). We will be publishing the second consultation around the end of 2011 which will consider other aspects of the scheme including the tariffs for other FIT technologies and proposals for introducing new cost control mechanisms for FITs to ensure the ongoing affordability of the scheme.

This consultation applies to England ,Wales and Scotland only.

Why your views matter

FITs was introduced on 1 April 2010, under powers in the Energy Act 2008. Through the use of FITs, DECC hopes to encourage deployment of additional small scale (less than 5MW) low carbon electricity generation, particularly by organisations, businesses, communities and individuals who have not traditionally engaged in the electricity market.

This will allow many people to invest in small scale low carbon electricity, in return for a guaranteed payment for the electricity they generate and export.

Deployment of PV, has, in recent months, accelerated rapidly. Combined with falling installed costs (by at least 30%) and a number of other factors including rising electricity prices, this means that returns available to new generators are higher than envisaged.

The Coalition Government is committed to ensuring that as many people as possible are encouraged to consider local low-carbon solutions and are able to benefit from the funding available for the FITs scheme in the current Spending Review period (up to end of March 2015). With that aim in mind and in the light of the developments set out above, we consider that it is imperative that we introduce a correction to the tariffs for solar PV.