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The UK Government has confirmed cuts to financial support for domestic solar projects – but by less than expected. The so-called Feed-in Tariffs (FiTs) will be reduced by 64% in comparison to the previous proposal of an 87% cut.
That means the total cap for small-scale renewable projects will stand at £100 million from February 2016 to April 2019. FiTs is one of the renewable schemes funded through the Levy Control Framework (LCF) which is designed to control the costs of supporting low carbon electricity, paid for through consumers’ energy bills. DECC believes support for projects under FiTs is currently projected to cost at least £1.74 billion a year by 2020/21 if measures aren’t taken to control spend.
The announcement today follows a consultation launched in August this year and concerns and criticism from industry and green groups.
The FiT scheme currently supports more than 780,000 installations with 4.2GW of capacity of renewable electricity generating capacity across all supported technologies.
DECC said while government support is designed to help technologies “stand on their own two feet”, it should not encourage reliance on subsidies.
It has revised the tariffs for domestic solar which now stands at 4.39p/kWh for projects with a capacity of less than 10KW. It has also re-introduced pre-accreditation for solar and wind generators higher than 50KW and all hydro and anaerobic digestion generators. New applications will be paused from 15th January to 8th February to allow time for the implementation of cost control measures, DECC added.
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