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 the 23rd December 2011. NAPIT fears that this looming deadline could jeopardise the quality levels previously delivered by the scheme.

NAPIT fully supports this government in becoming the greenest ever, recognising the fact that renewable energy technologies could significantly aid the UK’s economic recovery, however, NAPIT opposes the deadline ‘eligibility date’ of December 12th 2011 and therefore plans to lobby government on behalf of its membership, so as to allay the deadline fears and widespread confusion of installers and their customers who have been cancelling orders.

Whilst NAPIT agrees 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 per cent, the current domestic FiT scheme attracts returns as high as 12.8 per cent. NAPIT suggests 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 on the announcement: “Reactions have been fiery but I must remind people that within the same structure, Germany still enjoy a 3 to 1 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”.