On 16th December 2015 the Government launched its response to its Consultation on the Feed in Tariff (FiT) and Renewables Obligation (RO). Overall the Government has listened to some of the concerns expressed by the tens of thousands of respondents to the Consultation on the FiT. It has however implemented in full its proposals for the RO.
In summary, there will be a short pause in FiT applications from 15th January until the 8th February. From the latter date, a series of new tariffs will be introduced, in some cases significantly below today's levels as shown in the table below:
As before, there will continue to be quarterly degressions based on volume of deployment. Pre-accreditation will be reintroduced from 8th February for projects over 50kWp. Existing pre-accredited projects will be protected until the end of March.
A key issue for all FiT generators will be the government's overall budget cap of £100m over three years with a rolling cap annually. If and when the cap is reached annually, applicants will go in to a queue and only be granted a FiT if extra resource can be found.
All this means that the FiT is still available for all our customers, albeit at reduced rates from February, and projects will still deliver a good return on investment, particularly up to 50kWp and approaching the 1MWp level. There is some additional risk given the cap but the reintroduction of the pre-accreditation is certainly welcome news in helping offset that risk.
Oakapple Renewable Energy Ltd remains very busy and is expecting to see an increase in installations after 8th February as we all become familiar with the changes. Please contact us as soon as possible if you are considering installations in Q1 2016.