DECC looks at 'exempting' housing associations from new tariff cut

Published by Ross Macmillan for 24dash.com in Housing and also in Communities, Local Government

The Government will examine whether community and housing association solar projects should be "exempt" from a reduced Feed-in Tariff (FIT) rate for schemes which claim the tariffs for a series of installations.

The Department for Energy and Climate Change (DECC) confirmed today it plans to halve solar subsidies to 21p for "domestic-size" installations from 1 April this year with an eligibility date on or after 3 March 2012.

It also plans to revise the energy efficiency rating criteria for eligible homes, lowering it to an Energy Performance Certificate (EPC) level D.

Previous proposals required a rating of 'C'. DECC said the previous proposals for a ‘C’ rating - or a commitment for all Green Deal measures to be installed - was seen as "impractical" at this stage.

The new proposals are open for consultation for the next eight weeks.

It announced - as part of the consultation - that from 1 April 2012, new ‘multi-installation’ tariff rates - set at 80% of the standard tariffs - will be introduced for solar PV installations where a single individual or organisation is already receiving FITs for other solar PV installations.

This, says DECC, aims to take into consideration the lower costs of bigger projects and curb excess profits made by companies who install panels on homes and then claim the FIT payments.

However, it said it would be "examining" whether community and housing association projects should be "exempt" from the reduced rate.

The reduced rate for multiple installations will only apply to schemes with 25 or more sets of solar panels under the new plans.

The Government is also proposing that future subsidies are pegged to the falling cost of solar technology.

However, the new plans do not give any certainty to those installing solar panels between December 12 and March 3.

The Government lost its court battle over plans to slash tariff levels after December 12 - before a consultation on the cuts was over - and says it intends to apply to the Supreme Court for permission to appeal.

Energy minister Greg Barker said: “Today we are announcing plans to improve the Feed-in Tariffs scheme. Instead of a scheme for the few the new improved scheme will deliver for the many. Our new plans will see almost two and a half times more installations than originally projected by 2015 which is good news for the sustainable growth of the industry."