Renewables developers are racing to secure pre-accreditation for new projects ahead of an expected 20% cut to Feed-in Tariff (FiTs) support in April 2014, according to advisers.
Thomas McMillan, a renewables adviser from rural consultancy Smiths Gore, described the current climate as a “last chance saloon” with developers rushing to lock into current FiTs rates before the end of this year.
It is understood that for new projects to qualify for the current FiTs, they must have planning consent and grid connection secured as well as their application submitted and acknowledged by industry regulator Ofgem before December 31st 2013.
The anticipated 20% cut in support is expected for schemes up to 500kW in size.
“It will be impossible for anyone entering the process with a blank sheet now to secure pre-accreditation,” said Mr McMillan.
“For schemes where planning and grid have been secured it is advisable to submit pre-accreditation applications in the next few days if not done already in order to meet the deadline.”
Developers with pre-accreditation could be guaranteed existing levels of FiTs support for set periods depending on their technology – solar PV for six months, wind and anaerobic digestion for 12 months and hydro power for two years, he added.
A 20% cut to support could result in a potential £280,000 loss in revenue from a 100kW hydro scheme over a 20-year period, said Mr McMillan.
“A 100kW hydro scheme would currently generate in the region of £70,000 per annum from FiTs payments,” he said. “This would be reduced to £56,000 per annum with a 20% cut to the FiTs.”