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08 Feb 2011 12:02:02

FiT review launched to address solar farm concerns

FiT review launched to address solar farm concerns
Energy secretary Chris Huhne has announced the government will be carrying out a review of the Feed-in Tariff (FiT) scheme amid fears it unfairly benefits large solar farms.

The Department of Energy and Climate Change (DECC) said there are concerns that costs relating to the scheme could get "off track" because of the growing number of solar farms in the UK, claiming the initial scheme did not "anticipate" such developments.

"I'm concerned this could mean that money meant for people who want to produce their own green electricity has the potential to be directed towards large scale commercial solar projects," Mr Huhne said.

Last year, Cornwall Council said it expected a solar farm boom, predicting it would eventually receive 100 applications, with more than 40 companies having already expressed an interest.

The findings will be released later in the year and any changes should not take place until April 2012 "unless the review reveals a need for greater urgency".

Any applications under the scheme from large scale solar projects will be fast tracked, so they can form part of the basis of the review.

All parts of the scheme - tariff levels, including those set for anaerobic digestion, its administration and the eligibility of installations - will be reviewed.  ADNFCR-1235-ID-800391279-ADNFCR

Discussion Thread  

Toddington wrote:

08 Feb 2011

It seems very clear to me that the government has forgotten why it introduced the feed-in tariff.

Just in case anyone else needs reminding, the purpose of the FIT is to help meet the 2020 emission reduction targets by increasing the amount of renewable energy in the energy mix. With this fact now remembered, let's think again:

The FIT subsidy is 41.3p/kWh for domestic installations v.s. 29.3p/kWh for larger installations – therefore for every unit of energy produced, domestic PV costs almost 30% more than commercial-scale PV. As the FIT budget is capped, incentivising smaller more expensive PV would result in up to 30% less PV installed than if the focus was commercial scale PV. This is not an efficient way to meet our 2020 targets!

Large-scale solar farms are the lowest cost option! Get a grip government!

Discussion Thread  


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