The Government has confirmed the outcome of the fast track review on Feed-in Tariff (FiT) levels for the support of large scale solar and anaerobic digestion installations.
The FiT's include new tariffs for large scale and all stand-alone solar and farm-scale anaerobic digestion to start from 1 August for new installations.
Energy and climate change minister Greg Barker said: 'The new tariffs will ensure a sustained growth path for the solar industry while protecting the money for householders, small businesses and communities and will also further encourage the uptake of green electricity from anaerobic digestion.'
The new generation tariffs for large scale solar and anaerobic digestion under the Government's green electricity scheme have been confirmed following the recent public consultation on large scale solar and anaerobic digestion which closed on 6 May 2011.
The fast track review looked at reducing the tariffs for large scale solar to protect the money available for small scale projects and the range of technologies supported under this scheme. The review was launched following initial evidence showing the number of large scale solar projects in the planning system to be much higher than anticipated.
From the 1 August 2011, new entrants into the FiT scheme will receive amended tariffs as below:
Solar PV:>50 kW - ≤ 150 kW Total Installed Capacity (TIC) - 19.0p/ kWh
>150 kW - ≤ 250 kW TIC - 15.0p/ kWh
250 kW - 5 MW TIC and stand-alone installations - 8.5p/ kWh
Anaerobic digestion:≤ 250 kW - 14.0p/ kWh
>250 kW - ≤ 500 kW - 13.0p/ kWh
Mr Barker continued: 'I want to drive an ambitious roll out of new green energy technologies in homes, communities and small businesses and the FiT scheme has a vital part to play in building a more decentralised energy economy.
We have carefully considered the evidence that has been presented as part of the consultation and this has reinforced my conviction of the need to make changes as a matter of urgency. Without action the scheme would be overwhelmed. The new tariffs will ensure a sustained growth path for the solar industry while protecting the money for householders, small businesses and communities and will also further encourage the uptake of green electricity from anaerobic digestion.'
Over 500 responses were received and analysed before a decision was made regarding the change in tariffs. The fast track review showed that the number of planned larger PV projects is much higher than originally expected. Without urgent action, the scheme would have been overwhelmed within a very short period of time. Every 5 MW large scale solar scheme would incur a cost of approximately £1.3 million per year, which means that 20 such schemes would incur an annual cost of around £26 million, money that could support PV installations for over 25,000 households.
The changes, to take effect from 1 August for new installations and subject to Parliamentary and State aid clearance, will help manage the finances of the Feed-in Tariffs to ensure value for money for the consumer and to help protect the scheme in the future. Solar schemes under 50 kW are unaffected by this review.
