DECC announces FIT revisions

By Erin Voegele | December 22, 2015

On Dec. 17, the U.K. Department of Energy and Climate Change announced additional revisions to renewable energy subsidies, including changes to the Feed-in Tariff (FIT) scheme.

A notice published by the DECC explains that the FIT is a scheme where a party can be paid (the tariff) for electricity generated from solar, wind, hydro or anaerobic digestion. The tariff is paid to the party whether or not it uses the electricity itself or exports the power to the grid.

According to the DECC, deployment caps will be set to limit new spending on the FIT scheme to £100 million ($148.85 million) up to the end of 2018-’19. The government has also announced the reintroduction of pre-accreditation for solar photovoltaic and wind generators over 50 kW and all hydro and anaerobic digestion generators. In addition, the DECC announced measures to pause new applications to the FIT scheme from Jan. 15 to Feb. 8 to allow time for the implementation of cost control measures.

The U.K. Renewable Energy Agency indicated the DECC’s actions drop anaerobic digestion deployment caps to 20.8 MW, from an original 26 MW proposed for 2016.

“From where we were after the initial consultation this is a real improvement and praise has to be given to DECC ministers in their willingness to listen and change, said Nina Skorupska, CEO of the REA. “The past 6 months have been challenging for our members and the renewables industry, but we now have to draw a line and turn our attention to building a stable, robust and enduring industry leading to a business built without subsidy.”