With the end of Feed-In Tariffs looming, Justin Butt, associate in our Energy team takes a look at the details of the order.
The Feed-in Tariffs (Closure, etc.) Order 2018 (SI 2018/1380) (FITs Closure Order 2018) was made on 17 December 2018 and comes into force on 1 February 2019. It is accompanied by an explanatory memorandum. The order provides that new installations that apply to the scheme after 31 March 2019 will not be accredited, subject to the following time extensions and grace period for:
• ROO-FIT scale installations (all hydro and anaerobic digestion; solar photovoltaic (PV) and wind with a declared net capacity over 50kW) for which applications for preliminary accreditation or extended preliminary accreditation for community energy installations are received by Ofgem on or before 31 March 2019 and that apply for accreditation during the period of validity of their preliminary accreditation.
• Microgeneration Certification Scheme (MCS)-scale installations (solar PV and wind with a declared net capacity of 50kW or less; and all micro-combined heat and power) that are not pre-registered as a community energy or school installation, for which an MCS certificate is issued on or before 31 March 2019, and that apply for accreditation on or before 31 March 2020.
• MCS-scale community energy installations for which applications for pre-registration are received by Ofgem on or before 31 March 2019, and that commission and apply for accreditation during the period of one year following receipt of the pre-registration application.
• MCS-scale school installations for which applications for pre-registration are received by Ofgem on or before 31 March 2019, and that apply for accreditation during the period of one year following receipt of the pre-registration application.
• ROO-FIT scale installations to which the 12-month grace period set out in the new article 7B applies. This has been designed to reduce the risk of projects with preliminary accreditation missing the period of validity due to delays in grid works or radar works beyond their control. This only applies to those installations whose preliminary accreditation validity periods end on or after 31 March 2019.
The order also:
• Sets out how the tariff rate will be calculated on or after 1 April 2019 for installations benefiting from the time extensions or grace period.
• Includes metered exports in the levelisation process for FIT Year 10 starting from 1 April 2019.
• Implements an exemption from the annual levelisation payment calculation for electricity supplied to EIIs from 1 April 2019 (subject to receipt of state aid approval).
• Updates references to applicable MCS installation standards for solar PV installations and heat-led combined heat and power (CHP) installations, for installations commissioned on or after 12 March 2019.