UK government confirms rise in micro-CHP feed-in tariff

The UK’s Department of Energy and Climate Change (DECC) has announced the final package of changes to the feed-in tariff (FiT) scheme, following consultation earlier this year.

The changes will affect tariffs for all newly eligible FiTs technologies, including micro-CHP from 1 December 2012 onwards. Changes to solar tariffs, which had already been announced, will come into effect from 1 August 2012.

A degression mechanism will be introduced for anaerobic digestion (AD), wind and hydro from April 2014, in line with the projected uptake of these technologies.

Tariffs will be published two months before the degression date and will be based on publicly-available data, Barker confirmed.

Commenting on the announcement, 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 hydropower.

“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.”

Dave Sowden, chief executive of the Micropower Council welcomed the changes, saying: “We welcome what is broadly a very positive set of proposals that should bring greater confidence to investors and customers.

In particular the decision to increase the export tariff, the clarification of cost controls for micro-CHP, the community proposals and the decision not to extend energy efficiency requirements beyond PV are welcome developments.”

Barker also launched a consultation on budget management and environmental sustainability of the non-domestic Renewable Heat Incentive (RHI).

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