Feed-in Tariff Update

DECC has today laid before Parliament 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 solar PV installations with an eligibility date on or after 3 March 2012 under the Feed – in Tariffs scheme (FITs).

Energy and Climate Change Minister Greg Barker said:

“I know this is a difficult time for the sector and I want to do as much as I can to end the current uncertainty created by the legal challenge.

“We must reduce the level of FITs for solar panels as quickly as possible, to protect consumer bills and to avoid bust in the whole Feed-in Tariff budget.  We’re appealing against the court ruling that’s challenged our proposal for a December reference date.  This remains our aim, and we are waiting for the judgment of the Court of Appeal.  But this is too important for us to sit and do nothing while we wait.  Today we’re putting in place a contingency that will bring a 21p rate into effect from April for installations from 3 March.

“However, we are still pressing ahead with our appeal and if successful, we retain the option of introducing a December reference date.  In the circumstances we believe this gives the industry as much certainty as is possible.  And it puts us in a better position to protect the budget for everyone involved.”

Feed-in Tariff Update