Originally published 13 June 2011
Keywords: UK government, solar projects, Solar PV, new funding tariffs, Feed-In Tariff, FiT
The UK Government last week confirmed new funding tariffs for large-scale Solar PV projects under its green electricity initiative, the Feed-In Tariff ("FiT") scheme. From 1 August 2011, new entrants for solar projects into the FiT scheme will receive amended tariffs amounting to up to a 70% cut to current levels of funding. Schemes under 50kW are unaffected by the changes.
According to Government sources, the changes are aimed at achieving a "sustained growth path for the solar industry", although the announcement comes as a crushing blow to many within the UK's fledgling solar industry who had pinned their hopes on continuing Government subsidy. A major review of renewable energy published last month by the Government's advisory body on climate change – the Committee on Climate Change – noted the significant potential for solar PV generation in the UK, although its development is generally thought to have been hampered by the high costs associated with this technology.
The FiT scheme was introduced in April 2010 and is one of the ways in which the UK proposes to meet its ambitious climate change and renewable energy targets. Under the scheme, financial incentives are provided for the generation of electricity and heat on a small-scale using renewable sources (known as microgeneration).
Last week's announcement followed a 'fast-track' review launched by the Government earlier in the year following initial evidence showing the number of large-scale solar projects in the planning system to be much higher than anticipated.
A group of solar developers and investor organisations has been given permission to proceed with a Judicial Review action against the Secretary of State for Energy and Climate Change in relation to the handling of the review. A full hearing is expected before 29 July 2011, the outcome of which may have important implications for the solar industry in the near term future.
Learn more about our Environmental practice.
Visit us at mayerbrown.com
Mayer Brown is a global legal services organization comprising legal practices that are separate entities (the Mayer Brown Practices). The Mayer Brown Practices are: Mayer Brown LLP, a limited liability partnership established in the United States; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales; Mayer Brown JSM, a Hong Kong partnership, and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.
© Copyright 2011. The Mayer Brown Practices. All rights reserved.
This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.
