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Positive FITS, Negative ROCs
2012-07-23

The DECC’s latest announcement regarding the revised rates for the latest changes to Feed–in–Tariffs (FIT) at last brings certainty to the UK’s small scale renewable energy industry for farmers and landowners investing in renewables projects.

Mark Newton, head of renewable energy at Fisher German

Mark Newton, head of renewable energy at Fisher German

However the decision to delay the revised lower rates for ROCs payments until the autumn for large scale wind farms and solar parks will have a negative effect; especially solar parks which currently receive double ROCs. Wind farms in lower wind speed sites in England could become unviable.

Mark Newton, head of renewable energy at Fisher German, believes that confirmation of the FIT rates after months of consultation, and delaying their implementation from 1st October 2012 to 1st December 2012 is good news as it will reduce the pressure on people rushing to complete projects this autumn.

Mark comments “The certainty of the FIT rates now lets people know where they stand with their renewable energy projects. The FIT consultation is good news going forward for those looking to invest in wind projects over 50kW as the FIT has only dropped 25.4p/kWh to 21p/kWh up to 100kWs and from 20.6p/kWh to 17.5p/kWh from 100kWs to 500kWs. This coupled with an increased export tariff from 3.1p/kWh to 4.5p/kWh still allows medium sized wind projects to make excellent returns.

“Unfortunately wind projects in the 5-10kWh region will suffer as the confirmed drop in FITs for these projects from 28p/kWh to 21p/kWh will make the vast majority of projects unviable, except on high wind speed sites.

“Another benefit is DECC have announced there will be an accreditation scheme put in place allowing those developing renewables projects to benefit from the higher FIT rates on their project before it is built, providing they have planning permission and a grid connection offer.”

One of major blow to the solar industry is the delayed announcement of the ROC payments. Solar parks are expected to contribute up to 11GWs of the UK’s power requirements by 2020 and are the big new business opportunity for landowners and farmers - a delay in announcing ROCs rates is causing a lot of uncertainty and potentially delays investment in these projects.

For further information, please contact Mark Newton on 01858 411246 or email mark.newton@fishergerman.co.uk

link Government Announces Changes to Feed-In Tariff Scheme
link Windfarm Subsidies in the Doldrums
link Smart Solutions at Soil & Water Live 2012

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