Why are the tariffs being reduced if deployment is below the threshold?
Even though contingent degression is related to the level of deployment as described here, the government has decided that there can only be two successive quarters with zero degression.
Therefore if the last two degression levels were zero, the next quarter will see degression at the default level even if deployment is below the default corridor.
The government said:
Degression can only be skipped for two successive degressions, so there will be a minimum of 3.5% degression every 9 months to incentivise ongoing reductions in installation costs.
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