In its response to the consultation on recent feed-in tariff cuts, DECC announced its intention to make energy efficiency measures part of the requirement when installing a photovoltaic system in the UK.

Specifically, DECC is intending to proceed with a requirement based on EPC level D that will apply to both domestic and non-domestic buildings. The Department has continually reiterated claims that it “wants to ensure that solar PV is considered as part of a holistic approach to carbon reductions in buildings that prioritises energy efficiency.”

DECC estimates that 51 percent of all domestic properties in the UK are already rated at EPC level D or above. Around 65 percent of non-domestic buildings are estimated to be rate at EPC level D or above.

The new energy efficiency requirement will apply to all new solar PV systems with an eligibility date on or after April 1, 2012. At this moment in time it is not known whether the solar PV installation will contribute in itself to raising the EPC level. However, as a FiT application will have to include a valid EPC certificate as supporting evidence, it is unlikely that this will be the case.

To help customers meet the increased cost of reaching EPC level D, some financial support may be available from the Carbon Emissions Reductions Target (CERT) scheme and, from autumn 2012, measures will be largely financeable through the Green Deal.

DECC’s Impact Assessment estimates that the introduction of a level D efficiency requirement will dampen market demand by 40 percent in 2012/13, 25 percent in 2013/14 and have no effect in 2015/16.

Systems installed on properties with an EPC rating lower than D would only be eligible for a lower tariff, namely 9p/kWh. However, if generators can demonstrate that it is not possible to obtain an EPC certificate for the building, it will be exempt from the energy efficiency requirement.