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ARTICLE · 09 JUNE 2012

Green Uncertainty: The Solar PV Debacle Feed In Tariffs

Arthur Cox
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In GB, the Feed in Tariff (FiT) scheme operates as a green subsidy which was introduced under the Energy Act 2008 to encourage the installation of small scale ‘green’ generation units.

IrelandEnergy and Natural Resources
Arthur Cox
Arthur Cox
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In GB, the Feed in Tariff (FiT) scheme operates as a green subsidy which was introduced under the Energy Act 2008 to encourage the installation of small scale 'green' generation units. Under the scheme, electricity suppliers are required to make payments to eligible generators at a specified tariff, which is set depending on the technology utilised and the tariff year in which the specific installation is accredited.

Solar photovoltaic (Solar PV) systems were considered as having high installation costs compared with other low carbon technologies and, as a result, greater financial incentives were designated to encourage the uptake of these systems under the FiT scheme. This provided installers with a guaranteed rate of return to offset the capital outlay required.

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