On 15 March 2024, ADBA submitted its formal response to the Scottish Government's consultation on…
FIT deployment data & degression
This week DECC released its monthly deployment data for June. Following on from the previous two months we saw very little uptake.
Looking to the degression implications, you may already know we have already hit the 20% annual trigger for plants up to 500kW and last month we hit the 5% annual degression trigger for plants over 500kW. Although this week has been quite a negative one for the FIT due to the pre-accreditation announcement, see Matt's blog, one small glimmer of good news is that we have not hit a six-month 5% degression for plants over 500kW.
| Deployment needed for an annual 10% degression (MW) | Deployment needed for an annual 20% degression (MW) | Current deployment (MW) | |
| AD up to 500kW | 4.5 – 9.0 | 9.0 | 11.42 |
| AD over 500kW | 38.4 – 76.9 | 76.9 |
19.68
|
Even though plants above 500kW have not reached the 5% six month degression trigger it will still begin to fall in October 2015. The FIT legislation means that the tariff for the above 500kW band cannot be greater than the smaller bands – therefore once the 250-500kW rate of 9.36p/kWh falls to 8.42p/kWh in October 2015, the larger scale tariff will be capped at the same rate.
| Banding (kW) | Current tariff (p/kWh) | From 1 October 2015 (p/kWh) |
| <250 | 10.13 | 9.12 |
| >250-500 | 9.36 | 8.42 |
| >500-5000 | 8.68 | 8.42 |
The same capping rule will apply to larger scale plants for degression taking effect from April 2016, but changes could also be implemented by then following the review of the Feed-in Tariff in the autumn.
This week hasn't been great for good news regarding the FIT as I have already mentioned, to find out more about the consultation on pre-accreditation and how we plan to respond to it see my earlier blog.
If you have any queries please do get in touch via william.bushby@adbioresources.org.
