Loophole closed for solar VCTs

The Department of Energy & Climate Change has closed a loophole allowing companies to continue constructing large scale solar projects under higher feed-in tarriffs.

New rules coming into effect on October 18 will end the 12-month period allowing companies to construct later phase large-scale solar installations under the higher rate, according to Octopus Investments.

Paul Latham, the managing director of Octopus, says: “The announcement from Department of Energy & Climate Change didn’t come as a surprise to us. We responded early to the likely changes to the FiTs for large-scale solar and all of our sites have been constructed, completed and connected.

“This has helped to make us one of the UK’s largest investors into solar, and we’re continuing to make excellent headway with our programme of smaller-scale sub-50kW installations, where FiTs are unchanged.”

The asset manager recently launched a £40m joint subscription offer for two of its venture capital trusts for investment in the solar energy sector.