DECC seeking to Close Loophole in Feed-in-Tariff
As companies rush to take advantage of higher incentive rates in the feed-in-tariff before 1 August, the Department of Energy and Climate Change (DECC) is set to close a hidden loophole.
It’s only just beginning to generate publicity, because the escape clause – which provides UK solar project developers with the opportunity to by-pass the effects of the fast-track feed-in tariff review – has been suppressed by DECC to prevent an anticipated rush of installers.
Kept under wraps since its discovery, in order to prevent an anticipated rush of installations, under sections 15 and 16 of the Feed-in Tariffs (Specified Maximum Capacity and Functions) Order 2010 document, developers are able to install a system over the microgeneration amount before the 1 August deadline, which will enable them to receive the higher rate of the feed-in tariff. They can install an extended capacity within 12 months, with this extended amount also benefiting from the higher tariff rate.
Some companies have already taken advantage of the loophole, by installing what they can in the remaining timeframe, with the intention of expanding at a later date.
“We have become increasingly aware that a number of large-scale solar PV developers are positioning themselves to exploit a loophole in the feed-in tariffs extensions rules in order to bank the current tariffs beyond 1 August,” said a spokesperson for DECC.
“We are concerned about this development and are considering taking action quickly.”