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DECC DENY RUMOURS OF IMMINENT PV FIT REVIEW AND CUTS.

Filed under: Latest News

Solar news:  14 October 2011: DECC strenuously denies rumours that the FIT for PV’s may face an imminent fast track review & may be cut to as low as 9p across the board.

The UK’s Department of Energy and Climate Change today denied rumours that a fast track review of its generous and popular Feed In Tariffs, which have been branded a “reverse Robin Hood” policy (….. give to the rich) by social commentators, is on the cards, according to UK’s leading PV trade body, PV UK.

So what do you do with rumours? Ignore them or look at them in context? Let’s try the latter…

Context 1: The FIT spending pot is emptying ahead of schedule.

Context 2: TOO successful in cutting prices. 4kWp PV installations: 12% return on capital.

Context 3: OFT Off-Grid Energy Study to publish by end of Oct. Is the market balanced? No.

Context 4: Tory Conf shifted position on climate change from LEADING to being MID-pack.

Context 5: Sadly, PV is NOT named as being in UK’s “strategic energy mix”. But nuclear is.

Context 6: Lobbying, nuclear sponsors & recent centre-right report seeks end of PV subsidy.

I hope I am wrong, but the context is pretty compelling that DECC will be thinking something. Perhaps they are brain dead.

 

UPDATE Friday 14 1945 H:

We have now seen the following from another trade body:

“We have just confirmed with DECC that the situation is unchanged.  Namely:-

  • The review will continue to prioritise the spending envelope agreed at the Comprehensive Spending Review on 20th October, 2010.
  • The outcome of the comprehensive review of the Feed-In Tariff policy will be implemented on 1st April 2012, unless the review reveals the need for greater urgency.

We have been told that no decision has yet been taken on the contents of the compressive review.”

 

Sunday pm 16 Oct 2011

Update from DECC came in to a trade body saying:

“Our position hasn’t changed. All tariffs in the scheme are being considered in the Comprehensive Review and we will be consulting on proposals later this year. We’ve made clear that tariffs will remain unchanged until April 2012 unless the review indicates the need for greater urgency.  The FITs scheme is paid for by energy consumers through their bills and has a fixed budget. The scheme is proving popular with households and we’re continually monitoring the take up of the scheme to make sure that we stick to budget. Sorry we can’t provide more detail that that at the moment.”

I have put the bits that seem most salient in bold.

 

PV FIT cut rumours update 20 October 2011 from Green Engineering

“The discussion on how far to cut the Feed-in Tariff (FiT) for small-scale solar has been hotly debated, reports the Financial Times.

Some industry sources reportedly say that officials in the Department of Energy and Climate Change are calling for a reduction in the subsidy by three-quarters.

One coalition source told the Financial Times that money had been “flying out” of the scheme’s fixed budget, and that the original tariff levels had been set “embarrassingly” high.”
 

 


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