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Back You are here: Home Politics Funding & Incentives U.K. announces changes in small-scale R.E. subsidies

Funding & Incentives

U.K. announces changes in small-scale R.E. subsidies

New feed-in tariff rates for certain technologies will be in place in Britain starting December 1, according to the Department of Energy and Climate Change

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Specifically, new incentive rates for small-scale wind, micro combined heat and power, hydroelectric and anaerobic digestion projects were announced.

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The subsidies for small-scale wind projects were cut from 35.8 pence ($0.56) per kilowatt-hour to 21 pence/kWh.

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But micro CHP got an increase from 11p/kWh to 12.5p/kWh. Hydropower projects between 100 kW and 500 kW in size likewise were lifted from 12.1p/kWh to 15.5p/kWh.

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Meanwhile, a degression mechanism was put in place for anaerobic digesters, wind, and solar. Rate cuts will be automatically triggered when deployment of these technologies reaches certain thresholds, instead of an initial proposal of a 5 percent reduction.

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According to Energy and Climate Change Minister Greg Barker, the changes will give “greater certainty for investors” and a “fair deal for consumers.”

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“I want to provide long term certainty for those choosing to invest in all forms of small scale green electricity generation, not just solar, and our changes to F.I.T.’s will do just that,” said Mr. Barker. “We are introducing tariff guarantees for all technologies, great news for projects with long lead in times like hydropower.”

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The department will also introduce a system of "preliminary accreditation" to allow developers to secure the new tariffs once they apply for accreditation, given that the planning permission, grid connection, and relevant environmental permits are in place. Anaerobic digesters, hydro installations, and larger wind and PV installations at over 50 kilowatts will be the beneficiaries. – EcoSeed Staff

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