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ARTICLE · 27 JUNE 2011

DECC Confirms FITs Cut - Is There A Silver Lining?

Barlow Lyde & Gilbert LLP
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On 18 March 2011, the Department of Energy and Climate Change (DECC) launched a consultation on reducing financial support for larger-scale solar electricity generation projects.

United KingdomEnergy and Natural Resources
Humphrey Douglas
Humphrey Douglas
Wei Wu
Wei Wu

On 18 March 2011, the Department of Energy and Climate Change (DECC) launched a consultation on reducing financial support for larger-scale solar electricity generation projects.

The consultation followed a fast-track review of feed-in tariffs (FITs) for solar photovoltaic (PV) over 50kW and anaerobic digestion (AD) installations in February 2011 (please see our previous briefing "DECC proposals to protect FITs scheme").1 The consultation closed on 6 May 2011, and after one month of waiting, DECC confirmed its previously proposed degression on 9 June 2011. Whilst the FITs cuts may be an expected disappointment for the UK's solar industry, the proposed larger-scale FIT scheme under Electricity Market Reform and now the intimated inclusion of microgeneration technologies (eg solar PV) in the Government's "Green Deal" could produce a long-term boost for solar PV manufacturers and others.

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