Solar Photovoltaic (PV) Installations: Proposed changes to
Feed-In Tariffs – How does this affect me?
Why is the Government proposing these changes?
Why has the Government chosen 12 December as the cut-off date?
What you have to do to ensure you have a valid application in time?
How certain are these changes?
This guide has been written with a householder in mind to provide an overview of proposedchanges to the Feed-in Tariffs (FITs) scheme. It focuses on the proposed tariff changes forsolar photovoltaic (PV) installations with a capacity of 4 kW or less.The Energy Saving Trust website provides a wealth of information about your options(www.energysavingtrust.org.uk/FITSreview) their helpline number is 0800 512 012. Forcomplete details of the proposals, including the proposed tariffs for larger PV installations,please visit www.decc.gov.uk/FITS.On 31 October, the Government announced proposed changes to the FITs Scheme forsmall scale low-carbon electricity generation. These proposals could have an effect on therate of FITs payments you will receive if you install solar PV. If the proposals are agreedfollowing consultation, you will be affected as follows:If you already have an eligible solar PV installationMicrogeneration Certification Scheme (“MCS”) certificate, and your FIT licensee (anelectricity supplier) has received your application form and MCS certificate, there willno changeyour installation, to receive the current rate which is 43.3p for each kWh of electricityyou generate.If you are in the process of installinginstallation is completed and your FIT licensee (an electricity supplier) receives yourapplication for FITs together with a complete and valid MCS certificate beforemidnight on 11 December 2011each kWh of electricity you generate.If you are in the process of installing, or considering installingboth complete the installation and ensure that your FIT licensee (an electricitysupplier) receives your application for FITs together with a complete and valid MCSmidnight on 11 December 2011kWh of electricity you generate between the date your application is received by your 1 April 201221p per kWh generated for the remainder of the 25 years eligibility period.In addition, if you complete the installation and your FIT licensee (an electricitysupplier) receives your application for FITs together with a complete and valid MCSon or after 1 April 2012building to which your installation is attached or wired meets specified energyefficiency requirements in order to be eligible for the new 21p tariff. The consultationpaper contains more details of the proposed requirements. If you do not meet theserequirements at the time you apply for FITs (or, for a transitional period, within 12months afterwards), you would receive a lower tariff of 9p per kWh.The installer you choose needs to be accredited by the REAL assurance scheme which willprotect you from bad practice. More information is available via the REAL websitewww.realassurance.org.uk.The FITs scheme was designed to promote the take-up of small-scale low carbon electricitygeneration – largely through the installation of solar PV installations - by domesticconsumers and others. Take-up has been much higher than envisaged, and the costs ofinstalling PV have fallen by around 30% since the scheme started. The returns available tocustomers installing PV are therefore much higher than originally envisaged and areunsustainable without imposing a significant increase on the average electricity customer’sbill.The proposed changes will not affect those who have already installed PV and areregistered for FITs, but are designed to reduce the tariffs for new installations in the light ofdevelopments such as the falling costs of installing PV. The proposed changes also aim tolink FITs in future with improvements in energy efficiency which is one of the most costeffective ways of reducing carbon emissions. The average rate of return for people receivingthe proposed new rate of 21p per kWh is expected to be around 4.5%.12 December is 6 weeks from the launch of the consultation on 31 October. This is to allowthose who have already paid a deposit a reasonable period to complete their installation andapply for FITs.The important deadline is 12 December. Before this date, i.e. by midnight on 11 December,your FIT licensee (normally your electricity supplier) must have received your application forFITs and a valid MCS certificate for your installation. You should check in advance with yourFIT licensee about the application process for FITs (noting in particular that 11 December isa Sunday), and obtain a copy of their application form. For maximum certainty, we suggestyou consider using Royal Mail Special Delivery or a similar alternative from another deliverycompany which provides proof that the application has been received.The Government is currently consulting on these proposals. This consultation will continueuntil 23 December. The Government may, following receipt and analysis of theseconsultation responses, change some or all of the detail of the proposals. But it will not bringforward the cut-off date any earlier than 12 December, or the date for reduction of tariffs tobefore 1 April 2012. To take part in the consultation please visit www.decc.gov.uk/FITS.
