DECC confirms changes to green subsidy scheme

The UK Government has confirmed it will remove pre-accreditation for all new participants in the Feed-in Tariff (FiT) scheme. It will come into effect from October 1st this year and […]

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By Priyanka Shrestha

The UK Government has confirmed it will remove pre-accreditation for all new participants in the Feed-in Tariff (FiT) scheme.

It will come into effect from October 1st this year and is part of the government’s plans to reform renewable energy subsidies in an attempt to deal with a projected overspend.

FiTs provide developers of solar, hydro, micro CHP and anaerobic digestion with guaranteed payments for the energy they generate.

Pre-accreditation allows a developer to lock in the subsidy rate well before major construction work or installation to acquire the necessary planning and environmental permits and grid connections have been completed.

This means although the subsidy level may have reduced by the time electricity is generated, the developer will receive the higher subsidy agreed when the plant was in the planning stage but not guaranteed to go ahead.

Energy Secretary Amber Rudd said: “My priorities are clear: we need to keep bills as low as possible for hardworking families and businesses while reducing our emissions in the most cost-effective way.

“Our support has already driven down the cost of renewable energy significantly. As costs continue to fall it becomes easier for parts of the renewables industry to survive without subsidies, which is why we’re taking action to protect consumers, whilst also protecting existing investment.”

A public consultation on a wider review of the FiTs is currently open.