Support lowered for new wind and AD projects

Wind and AD technologies have been hardest hit by the latest round of quarterly Feed-in Tariffs cuts (degression), according to official figures.

Payments for all AD tariff categories, from sub-250kW to >500kW, have been reduced by 10% from 1 October, as have payments for 50-100kW and 100kW-1.5MW wind turbines and standalone solar.

The cuts are the result of deployment exceeding the quarterly limits set by government.

As soon as caps are reached the scheme effectively closes to new applicants in that tariff band until capacity becomes available in future quarters, on a first-come-first-served basis.

See also: How to avoid costly pitfalls during farm business expansion

Ofgem figures show a considerable carryover of new capacity within the 100kw-1.5MW wind sector in particular, where additional new capacity of 34.13MW far exceeded the 6.5MW cap.

Fisher German says FiTs in this sector are effectively closed until early 2018 and tariffs will degress approximately 11% every quarter (contingent and default degression) until capacity is available again, creating considerable risk and uncertainty for investors.

The latest figures have sparked renewed calls for government to re-examine tariffs and quarterly caps.

Some sectors have seen an increase in deployment caps in an attempt to stimulate dwindling uptake. Deployment in the 0-10kW, 10-50kW and >50kW solar PV bands was particularly low in the last quarter.

FiTs generation tariffs 1 Oct to 31 Dec 2016 (new installations only)

Technology

p/kWh

Solar PV

<10kW

4.18

10-50kW

4.39

50-250kW

2.03

250kW-1MW

1.69

>1MW

0.57

Standalone

0.51

Wind

<50kW

8.33

50-100kW

6.08

100kW-1.5MW

3.92

1.5-5MW

0.83

AD

<250kW

6.65

250-500kW

6.14

>500kW

6.33

Hydro

<100kW

7.65

100-500kW

6.12

500kW-2MW

6.12

>2MW

4.43

Micro-CHP

<2kW

13.45

Note: Export tariff for all technologies remains at 4.91p/kWh.

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