08 Sep 2010
Over 4,500 pioneering early adopters of solar and other forms of micro-generation technology could be in danger of missing out on the government's new feed-in tariff incentive scheme.
An analysis of the official register of feed-in tariff installations undertaken by the Renewable Energy Association has revealed that of the 6,900 installations entering the scheme since its launch in April, an estimated 1,390 were pre-existing installations that have simply transferred into the new incentive mechanism.
However, BusinessGreen.com has learnt that Ofgem originally estimated that around 6,000 installations are eligible to transfer over from the previous Renewable Obligation scheme to the new feed-in tariff.
As a result, an estimated 4,700 installations are yet to register for the scheme and have just a few weeks until the 1 October deadline to file paperwork with the energy watchdog requesting a transfer over to the feed-in tariff.
There is considerable confusion across the renewable energy market over what has happened to the missing 4,500 installations, the vast majority of which are thought to be domestic solar panel installations.
A spokeswoman for Ofgem insisted there is no backlog in registering transfers into the feed-in tariff, adding that it was the responsibility of those households or businesses with existing micro-generation technologies to lodge paperwork requesting entry into the scheme.
However, some households that have filled in the necessary paperwork have waited several months to receive confirmation that they have been successfully included on the feed-in tariff register and there are fears that many other households are unaware that they need to transfer.
One industry insider voiced concerns that energy suppliers, who are supposed to inform customers with renewable energy installations that they are eligible for the feed-in tariffs and notify them when they are successfully on the feed-in tariff register, may have sent just one reminder to customers earlier this year about the need to register and then failed to warn them that they could be missing out on the new incentive scheme.
In related news, Ofgem said it would take action "very soon" to address exaggerated reports regarding the number of new installations under the feed-in tariff scheme.
It has been consistently reported that the feed-in tariff has resulted in over 6,000 new installations over the past few months, despite the fact that over 1,300 of these installations were in place ahead of the feed-in tariff being introduced.
Industry insiders are concerned that the inflated figures are fuelling calls for the feed-in tariff to be scaled back, with critics claiming that the surge in new installations is evidence that the incentive scheme is too generous.
The Ofgem spokeswoman declined to offer details on how the watchdog plans to tackle the "confusion" over the number of installations, but confirmed that a clarifying statement was being prepared.
Meanwhile, a group of Lib Dem MPs yesterday tabled an Early Day Motion supporting the feed-in tariff scheme and urging Ministers to ensure "that the Comprehensive Spending Review supports the potential of PV and other small-scale renewable technologies to make a significant contribution to the UK's renewables targets".
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