This morning the Department of Energy and Climate Change has confirmed the details of its Feed-in Tariff Review Consultation which were the subject of a great deal of rumour, leaks and speculation last week.

The key headlines are:

• Payments for solar PV are to be reduced for projects below 250kW. For domestic-size schemes, payments are being reduced from up to 43.3p per unit to 21p for sites of 4kW or below

• Installations completed after 12th December 2011 will receive the new lower rate from 1st April 2012

• A new lower tariff rate is proposed for FIT recipients getting payments from more than one site (such as social housing schemes) – this will be 80% of the rate for individual schemes -16.8p

• Installations completed after 1st April 2012 will require an Energy Performance rating of C or above to be eligible for the FIT payments.

It’s worth reiterating that people whose solar PV installation are already complete will not be affected by the review – they will continue to receive the higher rate of 43.3p, index-linked and guaranteed for 25 years. But if you have a solar PV project underway but not yet completed, you will need to do so by 12th December. According to DECC, this means a project must be commissioned (in working order) and have had its request for accreditation received by a FiT licensee, such as Good Energy, for schemes up to 50 kW.

Good Energy already supports around 6,000 customers claiming FiT and our expertise ensures that microgenerators get reliable payment and detailed support throughout the process.

“We’re disappointed to see the Feed-in Tariff cut significantly. The real story here seems to be that due to pressure from George Osborne and the Treasury, DECC has had to cut the one scheme that gives households control over their rising energy bills,” says Juliet Davenport, Good Energy’s founder and CEO. “We’re concerned that these changes show that the Treasury doesn’t have a real grip on the economics of the energy market, and in particular the value of energy generated in the UK compared with the energy we have to import from abroad. Make no mistake – as a result of these cuts, fewer people will become microgenerators and the prospect of a stable energy future for Britain looks ever more distant.”

Good Energy has just published our snapshot of renewable electricity microgeneration in the UK, which demonstrates the huge success of the Feed-in Tariff so far and shows how the UK’s community of small energy generators is growing and evolving. Thousands are already taking control of their energy supply, insulating themselves against price hikes and rising fuel poverty. The Good Energy FIT Report findings include:

• Renewable electricity generation is no longer limited to affluent regions but has become widespread; hotspots include Stockport, Reading and Exeter
• Feed-in Tariff installations have risen rapidly in the social housing sector
• Microgenerators have changed the way they use energy and have reduced their consumption

These positive trends will now be under threat from the government’s new FiT proposals, in particular social housing installations will see their payments fall to around 16.8 p per unit unless they can complete their projects before December 12th. “The result will be a mad scramble to get solar pv installed in the next few weeks – and the groups most likely to lose out as a result will be community schemes and social housing projects, because they won’t have the flexibility to respond at such short notice,” explains Juliet Davenport. “That means some of Britain’s poorest households will miss out as a result of these changes. Good Energy’s data demonstrates how the FIT has been a fantastic vehicle for social investment, helping alleviate fuel poverty, and encouraging energy efficiency.”

Good Energy believes that strong uptake of the Feed-in Tariff to date represents a welcome shift towards a stable UK energy market that reduces its reliance on imported energy – something that will benefit energy consumers across the UK.

“Schemes like the Feed-in Tariff make renewable electricity accessible to a wider market,” Juliet Davenport continues. “Not only is it a great way for people to reduce their carbon footprint, but it should also make sound financial sense. We need even more people to embrace microgeneration if we are to change the way the UK generates and uses energy. Communities that are taking control of their energy needs deserve our full support. They deserve the government’s support. We need to follow in their footsteps if we are to change our energy future for the better.”

One small glimmer of light from these proposals is that DECC does seem to be aware of the importance of supporting community schemes. It says: “The government will consider whether more should be done to enable genuine community projects to be able to fully benefit from FiTs.” Let’s hope the answer is Yes.