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Smaller-than expected cuts to feed-in tariffs
The solar energy industry has welcomed the government’s decision on the new Feed-in Tariff (FiT) rates for renewable generators for 2016 and beyond, which the Department of Energy and Climate Change (DECC) announced in December. In the end, the cuts made to FiT rates were less draconian than had been expected following the government’s initial consultation document.
The government seemingly heeded the unprecedented support for solar power, says the Solar Trade Association (STA), and cut domestic tariffs by 64%, to 4.39 p/kWh, instead of the original proposal of cuts of up to 87%. This is compared to a rate of 12 p/kWh today. For a modest, commercial rooftop scheme the size of a school, the FiT rate will be 4.59 p/kWh. The new tariffs will come into force this month.
Paul Barwell, CEO of the Solar Trade Association said: ‘It’s not what we needed, but it’s better than the original proposals, and we will continue to push for a better deal for what will inevitably be a more consolidated industry with fewer companies. The new tariff levels are challenging, but solar power will still remain a great investment for forward-thinking home owners who want to protect themselves from volatile energy prices and do their bit to reduce global carbon emissions.’
‘Our initial analysis shows solar is still worth considering if you consider the wider benefits such as the increased value to your home. Homeowners can also benefit by changing the way they use their generated electricity through higher daytime usage or via storage, which is now a rapidly developing market,’ added Barwell.
The government also confirmed its decision to close the Renewables Obligation from 1 April this year to all solar projects, both rooftop and ground-mounted. The long-running Renewables Obligation scheme, that supports larger scale renewables projects, will continue to be open to other technologies such as offshore wind, hydro and biomass until 2017. It is gradually being replaced with the Contracts for Difference auction system.
News Item details
Journal title: Energy World
Subjects: Policy and Governance, Electricity generation, Solar energy, Offshore wind power, Energy consumption, Storage, Biomass, Feed-in Tariffs, Renewables, Solar power, Hydro power, Biomass, Energy prices, Climate change, Carbon emissions
