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Statistics suggest we are entering the 'hyperdegression' era

Statistics suggest we are entering the 'hyperdegression...

Published by the Department of Energy and Climate Change (DECC), the latest statistics suggest that the feed-in-tariff rate for standalone solar PV installs will degress on 1st July 2015, although awaiting confirmation  from Ofgem when the official statistics are released.

Under the FiT shows that 98.18MW of standalone capacity has been installed in 2015. With April’s 6.16/kWh FiT rate results in a 28% degression.

For companies that are looking at developing solar sites over 5MV, a degression to the standalone PV rate will have a large implication. Two projects with a capacity up to 5MW each can share one grid connection point, however one of the sites must be owned by a community, organisation or charity, recently confirmed by Ofgem and DECC.

 

Aggregate Total Installed Capacity of other than
standalone solar photovoltaic installations with
a Total Installed Capacity of more than 50kW deployed
in previous quarter

Degression RateAggregate total installed capacity
of all standalone solar photovoltaic
installations deployed in the
Solar Deployment Period
Degression Rate
Not more than 32.5MWnil *Not more than 17.5MWnil *
More than 32.5MW but not more than 65MW3.5%More than 17.5MW3.5%
More than 65MW but not more than 97.5MW7.0%More than 35MW but not more than 52.5MW7.0%
More than 97.5MW but not more than 130MW14.0%More than 52.5MW but not more than 70MW14.0%
More than 130MW28.0%More than 70MW28.0%

 

CEO of the Solar Trade Association, Paul Barwell, describes this as a hyperdegression era as he states: “A degression of 28% in the standalone band shows that we are now, as we predicted, entering the era of tariff hyperdegression. The problem is that there will now be a big rush to meet the 1 July deadline to get the 6.16p tariff which is certain to in turn create another 28% cut in Q4.”

Barwell also added: “The FiT is perfect for community-led schemes because it is a user-friendly support scheme. This degression will be a let down for all the community groups that the solar industry has worked so hard to engage and attract to solar – and that the government has wanted us to engage.”

However Ray Noble of UK Solar believes that the industry will be able to adapt from the degression. Adding: “Given time, the industry will no doubt be able to adjust to this tariff reduction. In the meantime there will be a rush to deploy before July, and pre-accredit wherever possible. This maintains the present tariff for up to six months. The new government should take note of what solar is capable of delivering, not only in terms of electricity but also in jobs. This is another step on the way of it being the cheapest form of electricity generation."

Posted by:Ecolution Products Limited

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