FIT Pre-Accreditation Is Coming Back!
DECC have decided to re-introduce Pre-Accreditation following the consultation as it decided that the proposed new cost control measures, such as caps (see our previous blogpost), would be effective at limiting cost escalations, meaning that Pre-Accreditation would appropriate for enabling deployment. The consultation raised concerns that caps would lead to uncertainty for projects as there would be no guaranteed support. Therefore, reintroducing Pre-Accreditation from 8th February 2016, will provide some reassurance for some projects under the cap scheme.
A Pre-Accreditation will be included in the cap quarter quota in which the application is received and as before will effectively reserves the FIT rate at the time of application submission for 6 months for solar and up to 12 months for wind. Plus community projects get an additional 6 months to provide them with further project security and reassurance they may require to get their projects running. Remember, that a project still requires planning permission and a confirmed grid connection to qualify for Pre-Accreditation.
The re-introduction of Pre-Accreditation is a positive step for the FIT scheme as it will help provide investors with the guarantee and confidence that they need to continue with their projects. However, it does emphasise the potential competition and demand to secure accreditation under the new cap scheme, which could catch some projects out if their application is unfortunately timed wrong. It is worth noting though that if an application misses out on a cap, it will still join the queue for the next cap, so could still have a chance at accreditation.