The deadline for responses is 11.45pm on Friday 23 October.
The proposed tariff reductions are much larger than were generally expected. For example, smaller-scale solar PV installations currently eligible for 12.47 pence per kilowatt hour, would only receive 1.63 pence per KWh under the proposed new tariffs - an 87 per cent cut.
The consultation seeks views on the impacts of the scheme's closure, whether implemented in the immediate term or as a phased closure over several years. However, the consultation also discusses possible future directions for small-scale renewable support, which could build on, or replace, FITs.
In particular, the consultation looks at:
- "Ways of introducing competitive allocation to drive down costs and increase value for money for bill payers. We wish to take views on the practical implications, advantages, and disadvantages of such a change."
- "Restricting small-scale renewables support to particular groups, such as householders and community groups, or particular technologies, such as solar PV, which appears closest to achieving subsidy-free existence with a final push of public support."
- "Limiting support to metered export so small-scale generators continue to have a route to market for the renewable electricity they produce."
The proposals are to reduce these generation tariffs, through a quarterly default degression mechanism. For solar PV, this system would mean that the generation tariffs would reach zero by January 2019.
Anaerobic digestion tariffs would not change under these proposals.
The consultation also does not propose any change to export tariffs at this stage. However, DECC are consulting on options to "ensure the long-term sustainability of the export tariff".
These options are:
- Withdraw the right for >50kW installations to opt for the export tariff
- Re-base the export tariff to a lower level
- Formalise annual re-set of the export tariff to a wholesale power price index
DECC proposes to put in place a rule to prevent new extensions claiming support under FITs and to end deemed exports in favour of fully-metered exports. This would include exiting FiTs installations, using smart meters.
Other proposals include raising the energy efficiency requirement for the higher tariff bands form EPC certificate band D, to band C, with a possible exemption to this C band requirement for fuel poor households, providing loft and cavity wall insulation has been installed, where possible.
To read the full consultation document, visit:
https://www.gov.uk/government/consultat ... iff-scheme
For a report from the Guardian, visit:
http://www.theguardian.com/environment/ ... o#comments