On 31st October 2011, DECC published the latest consultation on proposed changes to the FIT for Solar PV.

The proposal to cut the FIT for Solar PV from the 12th December 2011 is a severe blow to a large number of projects that were being undertaken for completion prior to the 31st March 2012.

Those projects with planning permission and grid connection offers that were about to start or have just started on site need to urgently discuss the project with their installer to decide whether or not the installation can be completed and also registered prior to the 12th December 2011.

Solar PV FIT Consultation

On 31st October 2011, DECC published the latest consultation on proposed changes to the FIT for Solar PV. The tariffs have been reduced for all system sizes and the proposed changes will come into effect on the 12th December 2011. This means that any installations commissioned i.e. in working order and having its request for accreditation received by a FIT licensee or Ofgem on or after this date will receive the new lower tariffs from 1st April 2012. Between 12th December 2011 and 31st March 2012 a new installation will receive the old higher tariff until April 1st 2012 when it will reduce to the new level. In order to receive the old higher tariff an installation must be fully commissioned before 12th December 2011.

These tariff changes are going to have a significant impact upon the financial viability of Solar PV projects which are currently in the pipeline and will increase the pressure on installers to get projects commissioned before the 12th December. Strutt and Parker's own financial model for Solar PV has been updated to take into account the latest proposed changes. For more information, read the full report.