Tariff rate to remain in place until March 2012- unless the Government wins appeal

19th January 2012

43.3p Tariff rate to remain in place until March 3rd 2012.-with guaranteed rate of 21.1p after the deadline!!

Today in a bid to bring clarity to solar installations the DECC have issued a written statement from Chris Huhne outlining the government proposal should they lose the appeal process.

“We are therefore laying before Parliament today some draft licence modifications which, subject to the Parliamentary process set out in the Energy Act 2008, makes provision for a reduced tariff rate (from 1 April 2012 onwards) for new PV installations with an eligibility date on or after 3 March 2012.

If the Court finds in favour of the Government’s appeal, we intend to stand by all our consultation proposals, including an earlier (December) reference date, subject to the Parliamentary procedure and consideration of consultation responses. It is very important that we reserve this as an option because these 43p payments will take a disproportionate share of the budget available for small- scale low-carbon technologies. We want instead to maximise the number of installations that are possible within the available budget rather than use available subsidy to pay a higher tariff to a smaller number of installations.

The consultation closed on 23 December 2011 and over 2,000 consultation responses were received which we have been analysing carefully. We are intending to announce the outcome of the consultation by 9 February 2012, in time for any resulting legislative changes to come into effect from 1 April 2012. Our aim is that this announcement will be accompanied by a set of reform proposals for the next phase of the comprehensive review of the FITs scheme, which will be the subject of a further consultation.

The new generation tariffs set out in the draft licence modifications being laid today are set out in the table below and would apply for all installations with an eligibility date on or after 3 March 2012. Further information on the Government’s response to this aspect of the consultation, together with a summary of the relevant consultation responses, is also being published today on the Department of Energy and Climate Change’s website and will be available from http://www.decc.gov.uk/en/ content/cms/news/wmsch_fits/wmsch_fits.aspx

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