Feed-in Tariff Scheme Comprehensive Review – IMPORTANT INFORMATION
On Thursday 9 February 2012 the Department of Energy and Climate Change (DECC) announced the Government Response to Consultation on Comprehensive Review Phase 1 – Tariffs for solar PV – link opens in a new browser window.
The Government response confirms a number of amendments that will affect solar PV installations:
Reduced Tariffs for all PV with a total Installed Capacity (TIC) of 250kW or less
These tariffs have been introduced from 1 April 2012 and affect all electricity generated from solar PV installations with an eligibility date on or after 3 March 2012. Those with an eligibility date before 3 March 2012 inclusive will continue to receive higher tariff.
Energy efficiency requirement and multi-installation tariff
To be eligible for the higher FITs tariffs, new solar PV installations up to and including 250kW, including extensions, are required to meet an energy efficiency requirement from 1 April 2012. This does not apply to stand alone installations.
Multi-installation tariffs apply from 1 April 2012 to any solar PV installation where the FIT generator or nominated recipient already owns or receives FIT payments from 25 or more other solar PV installations, which are located on different sites. Further information on the energy efficiency requirement and multi-installation tariff can be found in Feed-in Tariffs: Guidance for renewable installations V3- (Reference number: 44/12)
Any questions or concerns about the decisions in the consultation response should be sent to DECC using the ‘contact us’ page available on their website - link opens in a new browser.
Future changes to the FIT scheme
DECC have also announced a further 2 consultations:
• Consultation on Comprehensive Review Phase 2A: Solar PV cost control – link opens in a new browser window, and
• Consultation on Comprehensive Review Phase 2B: Tariffs for non-PV technologies and scheme administration issues – link opens in a new browser window.
Consultation on Comprehensive Review Phase 2A: Solar PV cost control proposed a number of amendments that will affect solar PV installations:
• A number of cost control mechanisms for solar PV tariffs, including tariff reductions from 1 July 2012
• Whether tariff lifetimes should be reduced for new entrants to the scheme
• Whether changes to indexation of tariff rates is necessary and what these changes might be
• Whether changes to export tariffs are necessary and what these changes might be
Consultation on Comprehensive Review Phase 2B: Tariffs for non-PV technologies and scheme administration issues proposes a number of amendments that will affect all other installations (other than solar PV) and various scheme administration issues:
• Financial aspects of the scheme including tariff reductions and cost control mechanisms
• Issues relating to eligibility and accreditation of installations
• Proposals for community installations
• Consumer issues
• Licensee issues
Any questions or concerns about the proposals in the consultation should be sent to DECC at the contact details provided in the consultation. The consultation will be open for 12 weeks from 9 February 2012 and closes on 26 April 2012.
Questions about FITs?
The initial point of contact for anyone wanting to find out more about electricity generation and how to join the FIT scheme is the Energy Saving Advice Service in England and Wales-link opens in a new browser window or 0300 123 1234 and the Energy Saving Trust in Scotland-link opens in a new browser window or 0800 512 012.
For all queries regarding your MCS Installer (or the MCS database), you will need to contact the Microgeneration Certification Scheme - link opens in a new browser window, who are completely independent from Ofgem.
Potential applicants are advised to review REAL Assurance's consumer guide for applications under the Feed-in Tariff on the REAL Assurance Website - Link opens in a new browser window.
Background to the FIT scheme
Read our factsheet for a simple guide to the FIT scheme.
A detailed report of accredited Feed-in Tariff installations is available below. This report will be updated on a quarterly basis.
The Feed-in Tariff (FIT) scheme is available through licensed electricity suppliers. It requires some of them to make tariff payments on both generation and export of renewable and low carbon electricity. Both generation and export tariff rates are index-linked which means that they will increase or decrease with inflation. The tariff rates are adjusted annually by the percentage increase or decrease in the Retail Price Index over the 12 month period ending on 31 December of the previous year.
The FIT scheme policy is set by the Government. Information on the Government’s policy behind the FIT Scheme is available on the Department and Energy and Climate Change (DECC) website - link opens in a new browser window. If you have any comments on the Government proposals or policy, please contact the Department of Energy and Climate Change at enquiries@decc.gsi.gov.uk or by telephone on 0300 060 4000. For any queries relating to VAT with relation to the FIT scheme, please contact HM Revenue & Customs - link opens in a new browser window.
The scheme itself is administered by Licensed Electricity Suppliers and Ofgem. The Energy Saving Trust and the Carbon Trust have been nominated by the Government to provide public information on the scheme and advice on how to apply.
The role of Licensed Electricity Suppliers
Licensed Electricity Suppliers with more than 50,000 domestic customers are mandated to join the FIT scheme (Mandatory FIT Licensees). Other licensed electricity suppliers can elect to join the scheme and become Voluntary FIT Licensees. They are collectively known as FIT Licensees. Licensed Electricity Suppliers cannot offer FIT Services unless they are confirmed to be a FIT Licensee, however they are obligated to participate in the levelisation process.
Generators wishing to receive FIT are advised to contact their supplier in the first instance. A list of FIT Licensees is available.
FIT Licensees play the main customer-facing role for this scheme and they are required to take generators through the registration process, take regular meter readings and make tariff payments.
The role of Ofgem under FITs
Ofgem’s key role is to maintain the Central FIT Register, which is a database of accredited installations. In addition, Ofgem administers the levelisation process and accredits small scale generators (installations with a capacity greater than 50kW) or micro and small scale anaerobic digestion and hydro installations. Ofgem is also responsible for ensuring suppliers comply with the FIT scheme requirements.
Disputes
Ofgem does not have a direct role in dealing with general complaints against a FIT Licensee.
Complaints against a FIT Licensee should be directed towards the FIT Licensee in the first instance. All FIT Licensees have a duty to participate in the complaints process in relation to compliance with their obligation under the FIT scheme. If after 12 weeks a satisfactory solution has not been agreed between both parties, the complaint may then be referred to the Energy Ombudsman at 0845 055 0760 or by going to the Energy Ombudsman website - link opens in a new browser window.
More information on complaint procedures and processes under the scheme is available from the Department of Energy and Climate Change (DECC) website - link opens in a new browser window.
The Feed-in Tariff Scheme is carefully monitored by Ofgem to prevent abuse. If you believe that someone is abusing the scheme, then please contact us with details. Anything you tell us will be used confidentially, email fitregister@ofgem.gov.uk or telephone 0207 901 1829.
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