The Government has announced plans to change the rate of return for the current Feed-in Tariff scheme which they say will “provide greater confidence to consumers and industry.” A tariff of 21p/kWh will take effect from 1st April this year for domestic-size solar panels with an eligibility date on or after 3rd March 2012.
Climate Change Minister Greg Barker defended his department’s position on the FiTs, after a recent lawsuit prevented DECC from halving the rate: “I want to see a bright and vibrant future for small scale renewables in the UK and allow each of the technologies to reach their potential where they can get to a point where they can stand on their own two feet without the need for subsidy sooner rather than later.”
DECC came under severe criticism for overlooking the amount of interest in the subsidy and found that their budget was very quickly depleted.
Ministers at DECC have claimed their new look scheme will benefit more people and actually encourage more renewable power generation. Greg Barker added: “Our new plans will see almost two and a half times more installations than originally projected by 2015 which is good news for the sustainable growth of the industry.”
A new ‘multi-installation’ plan was also announced which could encourage a higher level of generation. Anyone installing more than 25 installations could receive a tariff of 80% of the standard 21p tariff. DECC say they will also examine whether FiT schemes built on social housing could be exempted from the decreased rate.