Thought I’d post our response to DECC’s review on Feed in Tariff’s. Feel free to post your own response via this link.
1. Do you agree or disagree that there is a need to limit access to FITs for large scale solar PV installations in order to meet spending review targets? Please give reasons for your answer. If you agree, what do you think is the best way of doing this?
Brighton Energy Coop’s response:
Agree that 5MW projects were out of proportion and that a reduction is necessary to meet spending review targets. But while a limit is necessary, there are non-commercial schemes (such as ours, a community PV project), whose viability is questioned by a limit of 50KW. Therefore I support creating an exemption for community schemes, raising the 50KW limit to 400KW. It’s unlikely that communities will spark a bubble such as that created recently by VCs: grass-roots finance is neither rapacious nor is it dominated by the profit incentive.
2. Do you agree or disagree with the proposed new tariff bands and the accompanying proposed reduction of tariffs for PV installations in these bands? Please give reasons for your answer. If you disagree, please provide evidence to support an alternative.
Brighton Energy Coop’s response:
Disagree. As above: while the new tariff rates above 50KW will certainly stifle project development above that size, there should be an exemption for schemes that deliver benefits other than financial – i.e. community schemes. PV and FIT offers a real opportunity for communities to develop their own renewable capacity.
3. Do you agree or disagree with the proposed timing of the change in tariffs including the implementation date of 1 August 2011 and that the tariff change will apply to all installations with an eligibility date on or after that date? Please give reasons for your answer. If you disagree, please provide evidence to support an alternative.
Brighton Energy Coop’s response:
Disagree.
I don’t think it’s about dates – it’s about uncertainty. In general It’s not highly important whether it’s August 1 or not; it’s the will-he-won’t-he trepidation in the market.
4. Can you provide any further information or evidence on predicted uptake of installations or other insights that you think DECC should be aware of about how the market for PV is evolving in the light of FITs?
Brighton Energy Coop’s response:
A pioneering community energy scheme in Lewes, East Sussex (OVESCO) has raised 200K in the last two weeks (today 5 May – their ambition is 300K). They are rushing to get PV installed by 1 August. They think they can make it – but it’s tight.
Here at Brighton Energy Co-op we plan to raise 1m in the autumn for a 300KW PV project. In light of the review we are talking to 8 sites about 50KW or less installations – but it’s negotiations with one site is difficult, let alone 8! This is a prime example of why there needs to be an exemption for community groups.
