The Department for Business, Energy and Industrial Strategy (BEIS) has published the long-awaited consultation on the on the end of the Feed-in-Tariff (FiT), along with a Call for Evidence on the future of small-scale low carbon generation.
Both generation and export tariffs will end on 31st March 2019 and following this date, all applications under the scheme will be closed.
The Solar Trade Association (STA) has called for urgent clarity on the policy framework going forwards, which will have significant effects on the solar industry and millions of current and potential investors, including:
- Maintaining the export payments for surplus power exported to the grid for householders and businesses, in line with the recently published EU Directive
- An enforcement mechanism for the maintenance of high industry standards, which have been delivered through the Microgeneration Certification Scheme
- The role of aggregators for the services ‘smart’ solar homes can provide
- The removal of tax anomalies, which now present major distortions to the market for subsidy-free solar.
With so many issues to iron out before FiT ends, the concern is that a policy gap will leave ambiguity surrounding the industry, which has gained significant momentum in recent years and could be a key player in the UK’s low-carbon future.
STA CEO Chris Hewett said;
“Feed-In Tariffs have enabled around 800,000 households and 28,000 businesses to generate their own clean solar power to date, transforming the future of energy in the UK. Last week 10% of all UK electricity was generated by solar. This would simply not have happened without the Feed-in-Tariff. The good news, as we look beyond FITs, is that solar is coming of age and while solar always makes great environmental sense it now makes economic sense for most investors without public subsidies given fair treatment by government. An average domestic solar system cost £12,000 in 2010. It is more like £5,000 today.
“The bad news is that Government has been crystal clear today on what policy measures will stop – even very basic rights to fair export payments – but they are frighteningly vague on what comes next. There is real dismay that there is now a serious & needless policy gap between the end of FITs and the start of the new regime.
“We are therefore asking the Government to work with us and with the industry as a matter of urgency to fill that gap and ensure a smooth transition next March.”
You can read the STA’s full press release for more information, or follow the links to respond to the proposals:
- Consultation on the FiT Scheme (closes 11.45pm on 13th September 2018)
- Call for Evidence looking into the future of small-scale low-carbon generation (closes 11.45pm on 30th August 2018)
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