This consultation has been launched at the same time as the fresh PV consultation but on a slower timetable, running to April 26th rather than April 3rd2012.

Immediate Tariff Proposals

Modifications to tariffs are proposed to become effective in October 2012. Tariffs have been capped at the new proposed solar PV rate (21p/KWh) which affects some of the small wind tariffs, while Micro-CHP has attracted additional support. 

*Current tariff levels are indicative only. Official tariff rates for 2012/13 will be calculated and published by Ofgem by 1 March 2012. 

Borrowing from the solar PV proposals there are proposals for both regular degressions and deployment degressions. So for instance under the proposals, from April 2014, all tariffs will automatically fall by a minimum of 5% per annum, while additional and sooner degression could be implemented if total national installations exceed a given threshold. The baseline trajectories for tariff degression to 2020/21 are shown in the table below. It should be noted however that these tariffs will be subject to review within that time.

Further issues

The consultation also seeks views on a number of other issues, including:

• Indexation: whether to continue to inflate tariffs by RPI or another inflation measure;
• Energy Efficiency: they propose a long term objective to mirror the solar PV proposals as regards other technologies, while noting a number of practical difficulties;
• Site definition: a number of problems with how individual sites are classified are noted and suggestions sought on how to improve the clarity;
• Preliminary accreditation: to reduce investor uncertainty they are considering a preliminary accreditation process for wind installations>50kw and all hydro and AD schemes;
• Use of second hand equipment: should second hand or refurbished equipment be eligible for the feed in tariff and if so, what tariffs should they receive?
• Development of a voluntary framework on feedstock for AD which prioritises waste streams rather than dedicated crops. Regulatory controls will be explored if the voluntary approach does not achieve its aims;
• Community installations: the intention is to continue multi-installation tariffs for social housing schemes even after other multi-installation tariffs are reduced to the standalone tariffs. There is also an “open invitation” seeking other ideas and a proposal to mirror the preliminary accreditation procedure for community schemes;
• Clarity over the definitions of “attached to a building” and “occupied in relation to stand alone solar PV installations.

Read the full consultation here.