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Renewable Energy: DECC terms for FiTs review announced

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      CommentAuthorted
    • CommentTimeMar 18th 2011
     
    http://www.decc.gov.uk/en/content/cms/news/fits_wms_gb/fits_wms_gb.aspx

    >250kW - ≤5MW: 8.5p/kWh

    Reduced from current 29.3p (or 30.7p from 1st April) - that is just going to kill solar farms stone dead.
    •  
      CommentAuthorfostertom
    • CommentTimeMar 18th 2011
     
    Do you mean that they've overdone the adjustment so will unintentionally kill solar farms, rather than just putting a brake on runaway uptake? Or have they intentionally killed solar farms, in favour of smaller stuff?

    Will the upward adjustment for anaerobic kickstart that?
  3.  
    Does that mean so long as you get your scheme in prior to 1st August 2011 you can expect to be paid 30.7p. If so I had better hurry up.
    • CommentAuthorCWatters
    • CommentTimeMar 18th 2011
     
    So more wind farms it is then.
    •  
      CommentAuthorted
    • CommentTimeMar 18th 2011
     
    There isn't anything 'unintentional' about it.

    rj - yes - there is going to be a stampede to get these in before the deadline.
    •  
      CommentAuthorSteamyTea
    • CommentTimeMar 19th 2011 edited
     
    There was a bit in the Guardian about it today and it seems to me that it was wholly intentional to stop domestic bills increasing too much. I think they have put a total cap on at £900m, though not sure how this will work.
    Is it going to be 8.5p/kWh on top of what you can sell the power for?
    •  
      CommentAuthorted
    • CommentTimeMar 20th 2011
     
    The FiTs 'cap' is only for the period until the end of financial year 2014/15 and is £360m - maybe you confused that with the RHI funding that is 'capped' at £860m. These 'caps' are not mentioned in the legislation and are only obliquely referred to in the last Comprehensive Spending Review. Perhaps next week's budget will clarify (some hope)?

    The 8.5p is the proposed FiTs generation rate - reduced from 29.3p. You can sell the export for whatever you can get for it on the market.
    •  
      CommentAuthorfostertom
    • CommentTimeMar 20th 2011
     
    Posted By: tedYou can sell the export for whatever you can get for it on the market.
    AFAIK at domestic scale that's still stuck on the statutory 3p minimum? Is that different on larger scale? Any hope of the 3p creeping up?
    •  
      CommentAuthorted
    • CommentTimeMar 20th 2011
     
    RPI increases it to a massive 3.1p from 1st April.

    Due to rounding this is only about 65% of the increase that it should have been.
    • CommentAuthorjamesingram
    • CommentTimeMar 20th 2011 edited
     
    Ted , any thoughts/advice on the opt out of this fixed price and going instead for a negotiated price for exported electricity on the open market , getting an export meter fitted etc , for domestic <4kWp PV installs ?
    thanks Jim
    •  
      CommentAuthorted
    • CommentTimeMar 20th 2011
     
    For small systems there isn't much choice. And the difference between 3p and maybe 4p for a 4kW pv system is only going to be £20 over a year. The problem is the admin costs for suppliers. They can't afford to offer realistic rates to thousands of individuals. Smartmeters may help to change things.
  12.  
    So stick to the 50% "deemed" export tariff.
    thanks jim
    •  
      CommentAuthorfostertom
    • CommentTimeMar 20th 2011
     
    Posted By: tedFor small systems there isn't much choice
    Confirm that for domestic-scale installations there's actually no choice? Regardless of whether it's by 50% deeming or by smart metering? But that apparently for large installations the export tariff is negotiable, but still stuck on 3.1p?
    •  
      CommentAuthorted
    • CommentTimeMar 20th 2011
     
    For all sizes of FiTs systems the legislation, and the admin processes that support it, allow the owner a choice of whether to sign-up to the guaranteed export rate or to 'opt out' and try to negotiate a market rate and they are allowed to chop and change this a maximum of once per year. This just applies to the rate paid for export and is a completely separate issue from whether the system has an actual export meter fitted or uses the deeming method. Systems >30kW are required to have an export meter fitted, if they want to be paid for export, as the deeming method does not apply to them.

    But the choice between opting for the guaranteed export price or the market rate is only realistically a choice for larger systems who have MW to sell. Electricity suppliers aren't interested in handling tens of thousands of export contracts so the market rate they offer for small systems is never going to vary much from the guaranteed export rate. There is no incentive for them to do so because there is no profit in it.
    •  
      CommentAuthorfostertom
    • CommentTimeMar 20th 2011
     
    Posted By: tedThere is no incentive for them to do so because there is no profit in it.
    What about when suppliers' renewable obligations get ramped up year by year and they're keener to buy renewable supplies?
    •  
      CommentAuthorSteamyTea
    • CommentTimeMar 20th 2011
     
    Thank Ted, the fountain of all knowledge as ever.
    Yes it was the RHI I was thinking of not the FITs.
    Solar is a bit tricky to sell in advance in the UK even at the MW level, so it will hit the large installations even more. There is a chance to smooth the late afternoon peak in the summer a bit, but that depends on the price of gas in a year or two if any large solar come on stream, base load sells for peanuts and has to be as reliable as night and day, unlike solar which is as reliable as clouds in Cornwall, we have them often, but never know what sort they will be and when they will appear.
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      CommentAuthorted
    • CommentTimeMar 20th 2011
     
    Microgeneration is just a drop in the ocean - all domestic pv installed so far is barely equal to a single small wind-farm. It will still be cheaper for a supplier to pay the ROC 'fine' rather than incur the admin costs for handling thousands of contracts.

    DECC had the opportunity, in setting up FiTs, to create a tariff mechanism that was self-regulating but chose not to. They seem to have retained the 'grant' mindset that requires they retain tight control of the purse strings - even when it is not their money - and intervene on a whim, with consequences for all those involved.
    •  
      CommentAuthorDamonHD
    • CommentTimeMar 20th 2011
     
    Indeed.

    Rgds

    Damon
    •  
      CommentAuthorSteamyTea
    • CommentTimeMar 20th 2011
     
    Posted By: tedpay the ROC 'fine'

    Is this partly because the power generators are contracted to supply a certain amount at a certain time and see the cost of ROCs as smaller than the cost of failure to supply. Maybe we expect too much of our electrical supply these days, we now refer to a 2 second outage as a 'power cut', seem to remember that we were frequently disconnected for 4 to 6 hours in the 60's and 70's.
    • CommentAuthorJoiner
    • CommentTimeMar 22nd 2011
     
    •  
      CommentAuthorted
    • CommentTimeMar 22nd 2011
     
    Apparently DECC think the change will save £30 million over a 4 year period - http://blogs.ft.com/energy-source/2011/03/18/uk-reduces-subsidies-for-large-scale-solar/

    The only way this can happen, if the move is away from 5MW solar-farms which would have been paid 30.7p/kWh to domestic pv being paid at 43.3p/kWh, is if the amount generated is reduced by 240,000 MWh.

    With the average domestic pv system being 2.5kWp that would require 10,000 fewer homes with pv on each year for the 4 years.

    Conclusion: the £30 million saving will not happen. Costs will actually go up.
    •  
      CommentAuthorDamonHD
    • CommentTimeMar 22nd 2011
     
    Yes, and we should be putting up GWp of PV.

    Rgds

    Damon
    • CommentAuthorJoiner
    • CommentTimeApr 11th 2011
     
    Interesting...

    www.thisismoney.co.uk/solar-losses

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