Feed-In Tariffs – A briefing note by Ecuity

Government Response to Consultation on Comprehensive Review Phase 2B

The Government’s response to Phase 2B of the FITs consultation focuses on changes to the tariffs for non-PV technologies eligible for FITs, namely: Wind, Hydro, Anaerobic Digestion (AD) and micro-combined heat and power (mCHP), and set out proposals for future tariff degression and changes to the export tariff for these technologies. The response also focuses on administrative aspects of the scheme to ensure efficiency, as well as measures to support uptake under FITs by community groups.

According to the impact assessment which accompanied the Government’s consultation response, new tariff levels have been calculated based on a rate of return (RoR) range of between 5% and 8% and remain broadly appropriate for non-domestic investors that are the key investor group for the FITs. The final tariff proposals, to be introduced in December 1st 2012, are the same as those proposed in the consultation in February 2012. Based on the updated cost and performance data setpublished along with the consultation it remains uncertain whether all technologies will attain the suggested 5% – 8% RoR to trigger adequate consumer incentive and short-term uptake.

Please follow the link to view the full Ecuity briefing on the FITs announcement