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UK’s DECC confirm “plan B” if they lose their solar PV FIT subsidy court case.

Filed under: Latest News

UK solar PV FIT cut plan B strategy:

More Solar Subsidy Clarity for UK Solar Photovoltaic Panels Consumers! Phew…

Legal summary: DECC has announced that it will be laying before Parliament some draft licence modifications which, subject to the Parliamentary process set out in the Energy Act 2008, make provision for a the new rates to go through from April 1, 2012 with an eligibility date on or after 3 March. The move by DECC was welcome by the industry as it assure that 21p/kWh rate will be maintained after the 1st of April 2012.

The 2 main short term consequences of the Appeal Court are:

If DECC loses the appeal, the old tariff (eg 43.3p) will be paid to installations with an eligibility date between the 12th of December 2011 and the 3rd of March 2012 for the 25 years of the installation. But installations installed on the 3 March 2012 and after will be entitled to the reduced tariff 21p from 1st April 2011.

If DECC wins the appeal, they reserve the right to enforce the 12th of December 2011 reference date as stated in the Consultation. DECC will announce the outcome of the consultation by 9th February 2012. This announcement will be accompanied by a proposal for a second FiT review consultation.
This statement by Gaynor Hartnell of UK’s Renewable Energy Association says it all.

“We should know the outcome of DECC’s appeal of last month’s Judicial Review by 9th February. If DECC loses, then the higher rates will apply until 3rd March. If DECC wins, it can follow through with its consultation, and implement the decisions it arrives at, having regard to the 2,000+ responses it received. Gaynor Hartnell concludes:

“This removes some of the short-term uncertainty and it is a welcome move. There will have to be a second order covering tariffs for other technologies, clearing up: the rates applicable between 12th December and 3rd March; any energy efficiency requirements it may implement; and a means of adjusting tariffs in line with prices in an orderly manner in future.”

Collation of articles:

·         Chris Huhne’s ministerial statement

·         FITs update on DECC website

·         Solar Power Portal coverage of the solar story.

·         Greenwise coverage of the news.

·         BusinessGreen coverage of PV FIT story.

·         The Guardian coverage.

Regards, Barry.


Written and published by -
Genfit - 0844 567 9032

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