The Department for Business, Energy and Industrial Strategy (BEIS) has today published its response to the summer consultation to close the Feed-in Tariff scheme to new applicants. Despite over 90% of responses disagreeing with the proposal to close the export tariff in particular, the government has decided to proceed. The justification for the closure is the need to move towards a more market based solution which results in more cost reflective pricing and fairer costs for consumers.

 

On first read, the government’s response is very negative – over 90% of respondents disagreed with the changes citing incompatibility with climate change targets, losses to the industry and the inherent unfairness of providing export to the grid for free. However, tucked away on page 8, the response does acknowledge the need for a route to market post FIT and confirms that proposals for a new version of an export tariff for small scale renewables will be brought forward, in line with the comments made by Claire Perry recently in Parliament. We understand these proposals are well advanced. This is welcome recognition of the work Regen and many others have done calling on government to ensure small scale renewables get fair value for the power they generate and to provide ideas on creative replacements for the export tariff including improvements to the PPA market and ideas for a smart, dynamic tariff.

 

It is disappointing that proposals for a new scheme have not been published alongside the ending of the FiT and it is now inevitable there will be a significant gap between the end of the FiT and a new scheme coming forward. History suggests BEIS will struggle to consult on, bring forward and implement proposals in much less than a year. Once BEIS publish their plans for a future route to market, Regen will be working closely with members, with suppliers and with government to press an approach that is feasible in the current market.

 

We are in contact with BEIS to understand exactly when these proposals will be announced and we will keep all members informed.

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