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Brief History of the FIT

The UK's Feed-in Tariffs were first introduced in the 2008 Energy Act. This provided in sections 41 to 43 the 'enabling powers' for the Government to set up the tariffs. It did so by passing secondary legislation called a 'Statutory Instrument' 2010 N0.678 that came into force on the 1^st April 2010.

 

After the Government’s Comprehensive Spending Review in October 2010 the first there was an intention to refocus on the most cost effective technologies making a saving of  £40m in the £400m budget to 2014-15.

 

On the 7^th February 2011 DECC announced that the Microgeneration Comprehensive Review to be brought forward from 2012 to 2011 and a Fast-track Review of large solar (>50kW) with the conclusions being published in June 2011 concluding in significantly reduced rates.

 

On the 31^st of October 2011 DECC announced the Comprehensive Review consultation due to be completed by 23^rd December.  The intention was to reduce the rates drastically from the 12 December 2011 (the reference date).  This caused a rush to install systems during the 5 week period to the 12^th December.

 

A legal challenge was made against the Government regarding its issuing of a reference date before the completion of the Consultation.  On the 22^nd December the High Court ruled in favour of the challenge and found the Government to have acted unlawfully.  DECC immediately announced its intention to appeal and sought to seek permission to hear its case in the Court of Appeal.

 

On the 19^th January 2012 the  Government set down a draft licence of modifications before Parliament subject to the process set out in the Energy Act 2008 to establish a new reference date of the 3^rd March 2012.  On this date the new rates proposed in review are likely to be imposed.  DECC has been clear that for domestic systems this will be a tariff rate of 21p/kWh.

 

On the 25^th January the Court of Appeal dismissed the appeal and upheld the High Court’s ruling that the Government acted unlawfully.  Meaning that the existing tariffs prevail.

 

The Government immediately announced its intention to contest and make further appeals allow uncertainty to prevail.

On the 9^th of February DECC announced the its response to the Consultation on  Comprehensive Review Phase 1, their results are clear.  The proposed tariff changes are to be implemented and will be guaranteed until the 31^st March 2012.  After this further changes will take place notably introducing qualifying measures such as the Energy Performance Certificate rating of the property (which needs to be D or above). 

 

Also on the 9^th February the Comprehensive Review of Feed in Tariffs – Phase 2A: Solar PV Cost Control.  The consultation closes on the 3^rd April.  The main aspects of the consultation is the introduction of a new mechanism that will introduce 6 monthly digression for the PV tariffs and an additional deployment trigger to intervene earlier if necessary.

 

What does this all mean?  Well, in plain terms, the microgeneration feed-in-tariff is the victim of its own success.  Having interested a large number of people in a short period of time, established an industry, reduced PV costs by half and reached the mainland European price within 20 months it is time to slow it down…..Having raised awareness, established an interest, created an industry and significant momentum now is the right time to continue to drive the sector forward…..this is the only way we will reach the installed 2020 PV target announced by DECC’s Greg Barker also on the 9^th February.  Come on DECC please make sure your objectives are aligned!

 

Jamie O’Nians

MD, Your Power and Founder of the Bristol Solar Group

 

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