DECC snuck out The Feed-in Tariffs (Specified Maximum Capacity and Functions) (Amendment No.3) Order 2011 at the end of September, while everyone was distracted by the RHI fiasco. This implements the changes that were required to remove the ‘loophole’ that allowed a solar-farm developer to install 50kW now and then extend to 5MW within 12 months whilst staying on the ‘old’ tariff and thereby side-stepping the fast track tariff reduction.
Unfortunately the amendment is written using legalistic ‘short hand’ that makes it almost impossible to understand directly. You have to take the changes back and apply them to the original legislation in order to see exactly what they mean.
But the impact is to remove the ability for an extension to an existing FiTs system, if made within the 12 month window that was previously allowed, to enjoy the existing tariffs. From the 18th October they will only be able to claim the tariffs that apply at the Eligibility Date for the extension. That doesn’t make an immediate difference for sub-50kW PV, for example, as the rates haven’t changed.
But it will be critical for anyone who was thinking of extending a, say, 2.5kW PV system which was installed in May this year, to a 4kW system before the 12 months runs out and expected to get paid the 43.3p rate for the whole system (plus whatever RPI uplift is to be added to that next April). They will only get the extension’s generation paid at whatever the new rate will be from next April. And this is widely rumoured to be substantially less than the current figure.
Here’s a before and after of the main amended section, showing which parts have been removed.
