DECC: Phase 2B consultation results announced

The Department of Energy and Climate Change (DECC) has published the results of February’s Phase 2B consultation. Following responses from 303 parties and continued analysis from Parsons Brinckerhoff, the department has unveiled the feed-in tariff rates for Hydro-electric, Wind, Anaerobic Digestion (AD) and microCHP technologies.

The rates are shown below:

Technology

Band (kW)

Current generation tariffs (p/kWh)

Final tariffs from 1 Dec 2012 (p/kWh, 2012 prices)

Hydro

≤15

21.9

21.00

>15-≤100

19.6

19.60

>100-≤500

12.1

15.50

>500-≤2000

12.1

12.10

>2000-≤5000

4.9

4.48

 

≤1.5

35.8

21.00

 

>1.5-≤15

28.0

21.00

Wind

>15-≤100

25.4

21.00

 

>100-≤500

20.6

17.50

 

>500-≤1500

10.4

9.50

 

>1500-≤5000

4.9

4.48

 

≤250

14.7

14.70

AD

 

>250-≤500

13.6

13.60

>500-≤5000

9.9

8.96

microCHP

≤2 

10.5

12.50

The changes will come into effect from December 1, 2012 onwards. In addition to the newly-announced rates, AD, wind and hydro technologies will also implement a degression mechanism similar to one introduced for solar PV. The degression mechanism will take affect from April 2014.

The department has also announced tariff guarantees for all technologies covered by the FiT scheme. The preliminary accreditation system will apply to all AD and hydro installations as well as wind and solar projects greater than 50kW. Under the system developers will receive certainty over tariffs for six months to two years depending on the technology.

Commenting on the changes, Energy and Climate Change Minister, Greg Barker said: “I want to provide long term certainty for those choosing to invest in all forms of small scale green electricity generation, not just solar, and our changes to FiTs will do just that.

“As well reducing tariffs over time for AD, hydro and small scale wind in line with uptake, we are introducing tariff guarantees for all technologies, great news for projects with long lead in times like hydro power.”

“We are also planning to remove the energy efficiency requirement for community and school solar projects in recognition of the hard to treat nature of community buildings often involved in such schemes, and the educational benefits that they can bring. These types of projects will also be able to get tariff guarantees for installations of any size, making it easier for communities to get involved in clean green local energy generation.”

The Renewable Heat Incentive (RHI) is also set to have a new degression model introduced, in order to prevent another boom and bust situation which engulfed the UK solar market last year. Under the system tariff will be reduced for new applicants if uptake approaches the pre-determined trigger points.  

Barker added: “The Coalition is fully committed to driving forward investment in renewable heat, and our proposals will make sure we provide the right support for the industry. We want to continue helping renewable heat to grow and flourish, providing long term certainty for those who choose to invest in it.”