Ofgem have unexpectedly made the shock announcement that the Feed in Tariff for wind is reducing by another 10% on October 1st 2014.
Last October they could have reduced the tariff, but didn’t, so the expectation (and hope) was that they wouldn’t exercise the right to reduce this October either.
Unfortunately, they have. This will undoubtably be catastrophic news for many sites that are only just now going into planning — or have yet to do so — because chances are that Ofgem will also reduce it by another 20% on April 1st next year too.
Here’s the current table which appeared this morning on Ofgem’s website…
As you can see in the chart above — the government are really starting to demonstrate their desire to bring the onshore wind sector to a swift end.
However, because Boythorpe Wind Energy specialise in refurbished turbines, we remain to be a profitable and highly-viable alternative for developers, farmers and land owners. Despite the tariff reductions, we’re able to continue offering 15% ground rent (wind turbine land lease deals), where many of our competitors only offer 10%.
Get in touch for more information about how we can help you get your site up and running, despite the reductions.