Entrants to scheme from 1 August will receive lower subsidies

The Department for Energy and Climate Change (DECC) has confirmed that reduced feed-in tariffs for large scale solar and anaerobic digestion energy projects will be implemented for new entrants to the scheme as of 1 August.

Following the recomendations of a fast-track review earlier this year, the government has decided to cut the subsidy available for producers of energy over 50kW in order to free up funds for smaller schemes.

As of 1 August 2011 the following tariffs will apply:

Solar PV:

  • >50 kW – ≤ 150 kW Total Installed Capacity (TIC) - 19.0p/ kWh
  • >150 kW – ≤ 250 kW TIC - 15.0p/ kWh
  • 250 kW – 5 MW TIC and stand-alone installations - 8.5p/ kWh

Anaerobic digestion:

  • ≤ 250 kW - 14.0p/ kWh
  • >250 kW – ≤ 500 kW - 13.0p/ kWh

The old rates were significantly higher:

  • 32.9p/kWh for 10kw to 100kw
  • 30.7/kWh for 100kw to 5MW and stand-alone installations

Greg Barker, energy and climate change minister, said: “I want to drive an ambitious roll out of new green energy technologies in homes, communities and small businesses and the FIT scheme has a vital part to play in building a more decentralised energy economy. 

“We have carefully considered the evidence that has been presented as part of the consultation and this has reinforced my conviction of the need to make changes as a matter of urgency. Without action the scheme would be overwhelmed. The new tariffs will ensure a sustained growth path for the solar industry while protecting the money for householders, small businesses and communities and will also further encourage the uptake of green electricity from anaerobic digestion.”

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