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The Feed-in Tariff has been under review for some time and as of Friday 20th July the Department of Energy and Climate Change (DECC) made the following announcement:

‘For AD, hydro, microCHP and wind, we consulted on tariffs that reflected our understanding of the costs and characteristics of each technology as well as the need for fiscal restraint and cost-effectiveness. Having reviewed the consultation responses and further industry data, the final tariffs will in most cases be implemented as proposed in the consultation. These include reductions in wind tariffs and a small increase for microCHP, reflecting its very low uptake to date, with other tariffs largely stable and will continue the link to RO support levels for the largest installations. A full table is set out below:

 

Technology

Band (kW)

Current
Generation
Tariffs
(p/kWh)

Consultation
Tariff
(p/kWh, 2012 prices)

Final Tariff
from 1 December 2012
(p/kWh, 2012prices)

Community
Energy Tariff

Hydro

1.5

21.9

21

21

21

 

15-100

19.6

19.7

19.6

19.6

 

100-500

12.1

12.1

15.5

15.5

 

500-2000

12.1

12.1

12.1

12.1

 

2000-5000

4.9

 4.5 (2.2 from April 2013)

4.48 

4.48

Wind

1.5

35.8

21

21

21

 

1.5-15

28

21

21

 21

 

15-100

25.4

21

21

21 

 

100-500

20.6

17.5

17.5

17.5

 

500-1500

10.4

9.5

9.5

9.5

 

1500-5000

4.9

 4.5 (4.1 frrom April 2013)

4.48

4.48

 AD

 250

14.7

14.7

14.7

14.7

 

 250-500

13.6

13.7

13.6

13.6

 

 500-5000

9.9

9

8.96

8.96

 MicroCHP

 2

10.5

12.5

12.5

12.5

 

Tariffs for the largest wind and hydro bands may be adjusted from April 2013 to reflect changes to level of RO support as a result of RO Banding Review.’

For the full announcement please follow the link: http://www.decc.gov.uk/en/content/cms/news/rhi_fits_min/rhi_fits_min.aspx

Below is a summary of the key points:

• The date of the FiT change will come into effect from the 1st December 2012 as opposed to 1st October 2012.
• The new rate will remain at 21p for small and medium sized wind turbines
• The rate is expected to remain fixed until April 2014 at which point it will reduce by 5% and then a further 5% per year thereafter.
• The Feed-in Tariff will maintain the annual RPi increase.
• The export tariff will increase to 4.5p from December 1st 2012

This is largely good news for the industry as it provides an extra couple of months to take advantage of the current higher rate for those clients who already have planning or who are well on the way with planning. For clients who are just starting the process, this announcement provides clarity on the returns they will receive and the 21p rate still provides a good return for those with a good site. If you have any further questions please do not hesitate to contact us in the office on 01937 581011.