Department for Energy and Climate Change (DECC) recently released a consultation that announces an end to Feed-in Tariff (FiT) schemes for new large anaerobic digestion (AD) sites, and a greater reduction to small and medium scale plants.
Here are the main points from the consultation:
- No FiT support for >500kW installations from 1st January 2017 (even if you have applied, and are in the queue).
- Reduced support for 0-500kW installations from the 1st January 2017 (although the degressions were likely to bring down the rates to similar levels by this date anyway).
- Sustainability requirements will now be in line with the RHI and ROC schemes.
- As with the RHI consultation proposal relating to biogas source, only up to 50% of electricity from gas produced by non-waste (crops etc.) will be paid on. For example:
- If you are wholly crop based, then you would only be paid on 50% of the electricity produced.
- If you are 75% crop based and 25% waste, then you will be paid up to the 50% mark on the crop based electricity and 25% on the waste proportion (totalling 75% of FIT payments).
- If you are 50% crop based and 50% waste, then you would be eligible for the full FIT payment.
We have to stress, however, that this is for new projects only and you can read the full consultation here.
If you have any questions or concerns then please contact our AD and CHP team 024 7669 8899.