The first review of the Feed-In Tariffs has now been brought forward by the government to take place during 2011 and have effect from April 2012.
In a written statement on 7th February 2011 the Secretary of State for Energy and Climate Change, Chris Huhne, announced an immediate review of the Feed-In Tariffs. Government said it would have two elements: a comprehensive review, and a fast-track review.
In practice this ended up comprising four reviews, and one additional rule change as follows:
Fast-track Review
This comprised mainly:
- A reduction of tariffs for larger solar PV systems, effective from August 2011
- A tariff increase for AD systems, effective from September 2011
These were followed by a rule change to the way in which system extensions are treated.
Comprehensive Review Phase 1
- A reduction to the other PV tariffs effective from March 2012
Comprehensive Review Phase 2A
- A tariff control mechanism to manage future tariff reductions for solar PV systems
Comprehensive Review Phase 2B
- All the stuff that was really intended to be covered by the periodic reviews
Timetable
The review will now take place in 2011 (rather than 2012, as originally scheduled), and is intended to be completed by the end of the year.
Tariffs will remain unchanged until April 2012 (maybe – see below. In fact some did change!).
However there are some provisos to this timetable, for large-scale PV and farm-scale AD (see below), and …
The review will be completed by the end of 2011, with tariffs remaining unchanged until April 2012 (unless the review reveals a need for greater urgency).
Fast-track review
A review-within-a-review will look in particular at so-called ‘large-scale’ solar systems and farm-based anaerobic digestion.
This seems intent on limiting the flow of Feed-In Tariff support into photovoltaics – see here.
Some inconsistencies
Our website tries to present the facts about the Feed-In Tariffs as they and independently. However on this occasion, and in the interest of the success of the tariffs, we feel compelled to spell out why this action by the government threatens the scheme.
Firstly, on the timing of the review
The Public Spending Review less than four months ago said
… changes will be implemented at the first scheduled review of tariffs unless higher than expected deployment requires an early review.
The first scheduled review was in 2012. Deployment rates have not materially altered in the last four months, yet an early review has been called.
The scheme has been running less than a year! This action will (has already) severely knock investor confidence in this (and other) government initiatives.
If you think it’s wrong, you can email Chris Huhne and say so.
On the premise of the fast-track review
There are several inconsistencies here, covered on our fast-track review page.
How you could participate in the Review
Initially the government requested input as shown halfway down this page.
They subsequently launched a formal consultation.
There are already several organisations co-ordinating responses to the review – some are listed here.