There are various different financial incentives which have been provided by the Department of Energy and Climate Change (DECC) to encourage solar installations both for household and non-domestic use. See below for a summary.
DECC’s announced changes to the FIT’s scheme on May 24th 2012, which became effective on 1st of August 2012. Some tariff changes took place on the 1st of November 2012.
Changes to FIT from the 1st of May:
Tariff degression mechanism explained:
Set future tariff alterations depending on uptake over the preceding three months
A comparison of old and new tariffs are set out in the table below :
*1.6ROC’s available from April 2013 which at 6.5-7p offers similar returns to the investor.
Future FIT changes – these will take place based on deployment rates. These deployment rates are broken in to three separate degression bands : domestic 0-10kW, small commercial 10-50kW, large commercial 50kW to 5MW. The degression mechanism will operate independently for each degression band.
The table below shows the degression % for each tariff point for a maximum deployment in a 3-month period (MW):
|Tariff Point||0-10kW||10 – 50kW||>50kW and stand-alone||Degression (%)|
Put in words, the table shows the following:
The following examples illustrate how the degression mechanism might operate for a hypothetical set of deployment figures:
|Degression Band||Tariff Band||Generation tariff from November 2011 (p/kWh)||Hypothetical deployment between August and October 2011||Degression (%)||Generation Tariff from February (p/kWh)|
|0-10kW||<=4kW>4-10kW||16.0p, 14.5p||195MW||3.5%, 3.5%||15.44p, 13.99p|
|>50kW and stand alone||>50-100kW>100-150kW>150-250kW>250kW-5MWstand-alone||11.5p, 11.5p, 11.0p,7.1p*,7.1p*||138MW||7.0%||10.70p, 10.70p, 10.23p,6.60p*,6.60p*|
For a full list of proposals set out in the consultation and more information on Feed In Tariffs, please see the link on the DECC website
FIT scheme – Government response to Consultation on Comprehensive Review Phase 2A: Solar PV cost control – 24 May 2012
Impact Assessment: FIT scheme – Government response to consultation on FIT’s Comprehensive Review Phase 2A: Solar PV Tariffs and cost control – 24 May 2012
FIT Review Important update from DECC (Phase 1 consultation): 19 January 2012
Press release from Climate Change and Energy Minister Greg Barker : 31st October 2011
FIT – General Feed in Tariff information from DECC
Registered FIT licensed suppliers - confirmed list of FIT licensees from Ofgem
Support for non-domestic solar thermal installations
The RHI is a tariff scheme payable to non-domestic energy users generating their own renewable heat. A range of technologies are supported including solar thermal.
The RHI came in to force at the end of November 2011. Solar thermal installations receive 8.5p per kWh generated for installations up to 200kWth for a 20 year period. Conditions apply, please see Ofgem RHI Guidance.
Support for domestic solar thermal installations
DECC plans to make further changes to the RHI scheme in ‘phase 2’ which will include households. DECC published its domestic RHI consultation consultation with a planned implementation date of the domestic RHI in April 2014. Domestic solar thermal systems installed from 2009 will be eligible to receive the RHI once this is launched in 2014.
As an interim measure to support domestic renewable heat, the Energy Savings Trust (EST) has been offering a one off Renewable Heat Premium Payment (RHPP) of £300 for commissioned solar thermal installations dated between 21st July 2011 and 31st March 2012.
DECC announced the RHPP grants available to household installing solar thermal systems would be doubled to £600. Householders will require undertaking a Green Deal assessment before consumer can receive their RHPP grants. Green Deal Assessment cost typically £100 for a domestic property. A list of accredited green deal assessor can be accessed here. The RHPP higher rate grant (£600) voucher is available for application made to the EST from 20th of May 2013 to the 31st of March 2014.
Please refer to the EST for RHPP eligibility and application. For more additional information, please see the links below.
Press release – link to DECC’s 10th March 2011
What is the RHI - link to EST website
What is the RHPP - link to EST website
Application form for RHPP – link to EST website