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News Article


November 2011

The Feed In Tariff Reductions

Yesterday, the Government confirmed plans to make changes to the Clean Energy Cash Back scheme which has been the catalyst to the quick success of the solar industry since it's inception in 2008. The scheme, responsible for the feed in tariff, has meant that purchasing a solar power system was a low risk, high return investment for consumers. However, with a 50% reduction in the renumeration for the production of clean energy by solar technology, the decision to purchase seems much less clean cut. This is of great concern to U Energy Solar, as we are sure it is to our customers, and here we will take a look at the changes and what they mean for you.

Exactly what are the changes?

It is proposed that systems that are given MCS certification after December 12th 2011 will receive a reduced feed in tariff rate after April 1st 2012. The following table shows the proposed reduced rates:

Reduced Feed In Tariff - Table 

To clarify, if a system is installed before December 12th 2011 it will be unaffected by the changes. If it is installed between December 12th 2011 and April 1st 2012 it will initially receive the current rate until April 1st 2012 when it will receive the reduced rate. If it is installed after April 1st 2012 then it will always receive the reduced feed in tariff. 

Additional to this, from April 1st 2012, properties having a solar system installed must reach a certain level of energy efficiency to receive a feed in tariff. Although not yet confirmed, it is expected that this will be Energy Performance Level C.

Reduced feed in tariff - Energy Efficiency Certificate

This will be implemented gradually with systems installed after April 1st 2012 but before March 31st 2013 being given a grace period of 12 months to make sure their level is up to the required standard.  

These industry-wide changes will obviously have a massive effect on the uptake of solar, but they are not unexpected and have not been put into place without good reason. Following the massive boom in solar installations, with the installation count doubling month on month, there is no way that the current feed in tariff could be maintained without detrimental effects on users of regular energy sources.

U Energy have measures in place to deal with as many customers as possible in the short time frame we have been given, to ensure that everybody can make the most from their solar power system. If you are interested in having a survey with the intention of installing prior to the feed in tariff increase then please get in touch now on 033 33 55 1000.