Feed-In Tariff Loophole Exposed

A three-month stay of execution has been given to solar project developers, after the recent revelation that a hidden loophole was giving them the means to by-pass the effects of the fast-track feed-in tariff (Fit) review.

Under sections 15 and 16 of the Feed-in Tariffs (Specified Maximum Capacity and Functions) Order 2010 document, large-scale solar project developers can install a system over the microgeneration amount before the 1 August deadline, which will allow them to receive the higher rate of the feed-in tariff. They then have 12 months to install an extended capacity, with the extended amount also benefiting from the higher feed-in tariff rate.

Something of a ground-breaking moment for the UK solar industry, the Department of Energy and Climate Change (DECC) has revealed that it will consult on the escape clause until 31 August, with any changes going through from 31 October. It means that large-scale solar projects that could potentially lose thousands could now end up recouping their costs, thanks to the three months grace.

The ‘Consultation on a technical change to the rules on the treatment of extensions to installations under the GB Feed-in Tariffs scheme,’ has been opened and will provide the solar industry with an opportunity to express their views on the proposed treatment for extensions.

2 Comments

  • three 31st July 2011

    Amazing, you would think that this loophole would have been spotted earlier!

  • themajor 6th December 2011

    Like all government grants over the past 4 decades by both the Labour Party and the Conservative party, they are always desgned for the better off to grab as much as they can but with caveats to ensure that the poor are either unable to apply and/or receive so little it does not make it worth their while to even consider it.

    To make the rich work harder one must pay them more but to make the poor work harder one must pay them less.

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