The Department of Energy and Climate Change (DECC) has published its response to the controversial ‘Phase 1 consultation on Solar Photovoltaic Feed-in Tariffs’.

DECC has announced that photovoltaic systems installed on or after April 1^st 2012 will be required to produce an Energy Performance Certificate rating of D or above to qualify for the full FiT level. DECC lowered the proposed level from C to D as a result of industry concerns raised from almost 3,000 responses to the consultation. DECC viewed the previous proposals for an EPC rating of C or linking it to all financeable measures under the Green Deal, as ‘impractical at this stage’.  DECC estimates that about half of all properties are already eligible for a ‘D’ rating.

Multi-installation tariffs will remain at 80% of the standard tariff, to reflect the lower costs that such installations benefit from. As a response to feedback, DECC has changed the threshold for the lower tariff from more than one, to more than 25 installations operated by an individual or organisation. However, DECC is consulting on a proposal that would allow social housing, community projects and distributed energy schemes to be exempt from the reduced multi-installation tariff rates.

Following the publication of a report analysing the falling costs of solar PV, DECC has proposed a much-touted cost control mechanism. DECC will remove the need for emergency reviews by ‘pegging the subsidy levels to cost reductions and industry growth to provide more certainty for future investments. This will ensure that subsidy levels keep in step with the market’. DECC will use budget flexibility to cover the overspend following the December surge in installations, while still allowing £460 million for new installations over the Spending Review period. DECC believes that this won’t have any impact on consumer bills beyond the agreed overall cap on renewable subsidies as it will primarily be funded from an underspend on the budget allocated for large-scale renewables.

DECC’s proposed mechanism for changing tariffs after July will include an automatic baseline transgression of 10% every 6 months, which can be triggered early if deployment exceeds pre-determined levels. The system will be reviewed annually to ensure that it is performing well against its objectives.
DECC is also proposing that solar FiT tariff levels should reduce from July 1^st, 2012. The rates for July will be 13.6p or 16.5p depending on the volume of deployment of PV in March and April 2012. FiT rates will be further reduced in October by 5%, and every six months thereafter. The Department is also consulting on whether the export tariff can be raised and whether or not the lifetime of the FiT scheme should be reduced from 25 years to 20.

After deliberating since January 13^th, the Court of Appeal has today denied the Department of Energy and Climate Change (DECC) a hearing for its appeal against the High Court’s December ruling on UK solar feed-in tariffs. This, in theory, means the feed-in tariff will now go back to 43.3p for sub-4kW systems installed until March 3^rd 2012.

The three Lords Justices of Appeal announced their reserved judgment this morning following a hearing on January 13.

The court judgement means all those who have installed solar since December 12^th, and those who intend to install systems before the March 3^rd cut-off point, will receive the higher feed-in tariff rates for the full 25 years. Customers who register on or after March 3^rd will qualify for the current higher rate until April 1^st, when the rates will drop to the lower rates, as set out in the October 31^st announcement.

Commenting on the decision, Daniel Green, CEO of HomeSun, said: “Four judges, including three in the Court of Appeal, have now called the Government’s actions illegal. That’s a four-nil victory and a decisive ruling that Government may not make retrospective changes to the FiT because, as Lord Justice Moses concludes, to do so “would be to take away an existing entitlement without statutory authority.”

“Both this appeal and the Judicial Review in The High Court would not have been required had DECC simply followed its own process and allowed the industry, that it claims to support, time to prepare for a lower feed-in tariff,” continued Green.

Tweeting post judgement, Greg Barker, Minister of State for Energy and Climate Change, said, “Win, lose or draw today, important we move forward together, drive down costs and step up deployment.”

Clare King, a renewable energy lawyer at Osborne Clarke, said: “This decision will be a surprise to many observers. We, like many others, will be studying the judgment closely so as to fully understand the implications for the UK solar industry.”

It is currently unclear whether Government will appeal to the Supreme Court.

Further comment and analysis of the decision will be posted on Solar Power Portal later today.

The Court of Appeal decision on whether to allow the Government’s legal bid to overturn a ruling that it’s cuts to the Feed-in Tariff was unlawful is to be announced on Wednesday, January 25^th.

The ruling of the three appeal court judges will be delivered a week after the Department of Energy and Climate Change confirmed a contingency date of March 3^rd for the retrospective introduction of the revised 21p tariff rate should its appeal fail.

A spokesman for Friends of the Earth told ClickGreen today: “Our solicitors were informed late on Friday evening that a decision would be delivered next Wednesday, we have been told no further hearing will be held.”

Energy Minister Greg Barker earlier this week said the new March 3^rd contingency date was brought in should the Government fail in its appeal bid in an attempt to provide clarity and certainty for the solar industry.

In a statement, he said: “I know this is a difficult time for the sector and I want to do as much as I can to end the current uncertainty created by his department’s legal appeal.”

“We must reduce the level of FiTs for Solar panels as quickly as possible, to protect consumer bills and to avoid bust in the whole Feed-in Tariff budget. We’re appealing against the court ruling that’s challenged our proposal for a December reference date.”

“This remains our aim, and we are waiting for the judgment of the Court of Appeal. But this is too important for us to sit and do nothing while we wait. Today we’re putting in place a contingency that will bring a 21p rate into effect from April for installations from 3^rd March.”

“However, we are still pressing ahead with our appeal and if successful, we retain the option of introducing a December reference date. In the circumstances we believe this gives the industry as much certainty as is possible. And it puts us in a better position to protect the budget for everyone involved.”

Earlier today, the Department of Energy and Climate Change (DECC) put to parliament its proposals for the future of the UK Solar Feed in Tariff (FiT).

Early indications are that the 21 pence per unit for sub 4Kw systems will be locked in from the 3rd March if DECC loses the current court case, and from 12th December if it wins.

Following Friends of the Earth’s calls to publish a ‘Plan B’, Government has outlined its intentions for the FiT if it loses its appeal against the High Court’s ruling that its December 12 solar installation deadline was “unlawful”.

Today’s announcement is expected to place some much-needed certainty back into the industry.

The document, which is expected to be publically revealed this afternoon, is said to outline DECC’s plan to confirm the 21p rate for 4kW systems from December 12 to March 31 if the case is won – sticking to its proposals outlined in Phase 1 of the consultation process. If the case is lost however, DECC states its intention to initiate 21p from March 3 – which is exactly 40 days from today – until March 31.

Rates post April 1 are currently unclear, yet the annual degression rates for the next four years – until the end of the current spending envelope, will be outlined in Phase 2 of the feed-in tariff consultation, which is expected to be published by January 31.

However, if DECC does decide to cut the tariffs again after April 1 it will have to go through another parliamentary procedure, meaning any further reductions can not take place until the summer.

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Here at EZsolar we are always looking at new renewable technologies to help our customers achieve the best possible savings using our bespoke solutions. The latest addition to our repertoire are Hybrid PVT Solar Collectors.

The PVT Solar collector is a hybrid technology that combines Monocrystalline Photovoltaics with a high efficiency Solar Thermal collector. This, in essence, provides a “total Solar energy system” for both electrical and thermal energy generation. Aside from the obvious area and installation savings made by utilising this system, a higher efficiency is achieved at a much lower cost when compared to separate PV and Thermal systems due to the cooling effect applied to the PV module.

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If DECC loses this appeal then this once more opens up a short window whereby customers can continue to reach the high feed in tariff rates, and will start another gold rush to complete installations before the next deadline.  Whilst this does open up new short term opportunities the longer term level of feed in tariff is likely to be even lower. If DECC lose the case they may appeal to the supreme court as the implications of the principle of consultation periods is far wider reaching than just the PV situation and could set a precedent. Fortunately, at EZSolar we are constantly striving to bring excellent value to our customers without compromising on our very high quality standards to provide long term economic and environmentally attractive solutions.

Due to our growth in both the installation and distribution sectors of renewable technologies over the 24 months, we have up scaled to a larger, purpose built warehouse and storage facility to cater for our ever growing resources.

The new warehouse, sited once again in the beautiful Shropshire village of Cleobury Mortimer, will serve as a home base for our installation arm, and at some stage will feature a demonstration area show casing examples of our renewable technologies, in a fully installed working environment.

Electricity for the unit will be supplied, in part, by the already installed PV system situated upon the Southerly facing mono-pitched roof. Heating and hot water for the washing facilities will be aided by the Solar Thermal collectors, also roof mounted.

With further plans for a Log Burner and Straw bale insulation, to accompany the site’s current Wind Turbine, the new unit will represent a one stop renewable shop for prospective clients seriously considering renewable energy solutions for their home or business.

Designed as a one stop portal into everything renewable, from the latest ‘Green’ announcements to advise on how these technologies can assist your financials.