NAPIT responds to Feed in Tariff reduction
After confirming plans to halve the current domestic Feed-In-Tariff (FiT) from 43p per kWh to 21p per kWh, the Ministerial statement made by Greg Barker MP on the 31st October 2011 has been met with widespread pessimism, despite the ongoing consultation which will close on 23rd December 2011.
NAPIT fear that this looming deadline could jeopardise the quality levels previously delivered by the scheme.
NAPIT fully support this government in becoming the greenest ever, recognising the fact that renewable energy technologies could significantly aid the UKs economic recovery. However, NAPIT oppose the deadline ‘eligibility date’ of 12 December 2011 and therefore plan to lobby government on behalf of their membership, so as to allay the deadline fears and widespread confusion of installers and their customers who have been cancelling orders.
Whilst NAPIT agree that energy efficiency needs should be integral to the FiT scheme, it is also a concern that one of the government’s proposed eligibility requirements for properties would demand a band C energy rating, which practically excludes half of the UK housing stock built before 1950, which would otherwise benefit most from these energy efficiency improvements.
Initially designed to generate returns of around 5-8%, the current domestic FiT scheme attracts returns as high as 12.8%. NAPIT suggest that the forthcoming Green Deal should offer a viable funding solution for all small scale renewable energy technologies and that the new set of FiT rates should include an enhanced rate for <2.5kWp systems should be implemented.
NAPIT’s Chief Executive Officer John Andrews commented: “Reactions have been fiery but I must remind people that within the same structure, Germany still enjoy a three to one return on their investments. I urge all those affected by this announcement not to panic about what is still a good deal for PV offering attractive returns which remain comparable to those in place for other renewable technologies.”
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