UK Government changes to Feed-in Tariffs – new and proposed
After a period of uncertainty, the reduced FIT for solar PV systems came into effect on the 3rd March (and not the 12th December 2011 as the UK Government had originally intended). The UK Government is now proposing that FITs for solar PV should be reduced again from the 1st July 2012 and that the rates for other renewable energy technologies (apart from micro-CHP) should be reduced (or stay the same) with effect from 1st October 2012. Further information about these proposed changes is given below.
Most recent update (23rd March 2012)
The Supreme Court has rejected the UK government’s Feed-in Tariffs solar appeal which affected those people who installed solar PV between 12th December 2011 and 2nd March 2012.
As this process is now complete, it has now been confirmed that those who applied to receive Feed-in Tariffs for solar PV between those dates will receive the 43.3p/kWh rate* for the duration of the tariff (25 years).
A summary of solar PV tariffs for systems under 4kW and eligibility dates can be found below:
| Eligibility Date (as defined by the date the application is made for FITs) | Tariff Rate |
| 12th December – 2nd March 2012 | 43.3p/kWh |
| 3rd March – 31st March 2012 | 43.3p/kWh over that period only and then 21p/kWh from 1st April 2012 |
| 1st April 2012 – 1st July 2012 | 21p/kWh, plus new requirement to show property has an EPC Band D or above. The rate will be 9p/kWh if the property is not an EPC band D on the date the application for FITs is made |
| 1 July 2012 onwards | 16.5p/kWh – 13.6p/kWh (tbc). Rates will depend upon the total installed capacity between 3rd March and 30th April 2012. This is only a proposal and is still under consultation. |
* Note that from 1st April 2012 the 43.3p/kWh rate will increase to 45.4p/kWh as a result of index linking; the other rates will remain the same.
For more information, please visit the DECC website
UK Government current FIT consultations
On the 9th February 2012 the UK Government published
- A consultation on solar PV cost controls. This sets out the UK Government proposals for six monthly degressions for solar PV tariffs, to ensure the UK Government’s “commitment to a stable, predictable future for solar PV and for the whole FITs scheme”. The consultation closes on 3 April. A key consequence is that as of 1 July 2012 the FIT tariffs for solar PV are likely to drop again.
UK Government consultation on solar PV cost controls
- A consultation on tariffs for FIT technologies other than PV and scheme administration issues. This sets out the revised FIT rates for technologies other than PV. The consultation closes on 26 April.
UK Government consultation on tariffs for FIT technologies other than PV
Proposed changes to the FIT which may affect householders most from 1st July 2012 are:
- The Government are proposing further reductions to solar PV tariffs with an eligibility date from 1st July 2012. They have proposed three alternative tariff tables, the choice of which would depend on the volume of solar PV installed in March and April 2012. The rates in the tables are between 16.5p/kWh and 13.6p/kWh.
- That from 1st July 2012 that the FIT should be set at a level that would deliver returns broadly within the range of 4.5 to 8% under central cost assumptions rather than a specific target of 4.5 to 5%.
- The Government are also asking as part of the consultation exercise whether the period for which the FIT is paid should be reduced from 25 to 20 years (relevant to PV) and whether the amount paid by way of export tariff should be increased to new entrants to the FIT scheme (although this may then lead to further reductions to the generation tariff).
Consultation on proposed to changes to FIT rates for renewable electric technologies other than solar PV from 1st October 2012
The Government are consulting on changes to the FIT rates for renewable electric technologies other than solar PV from 1st October 2012 as follows:
| Technology | Tariff band (kW capacity) | Current tariffs (no change to current policy) | Proposed tariffs from October 2012 |
| Hydro | ≤15 | 22.0p/kWh | 21.0p/kWh |
| >15 to ≤100 | 19.7 | 19.7 | |
| >100 to ≤2000 | 12.1 | 12.1 | |
| >2000 to ≤5000 | 4.9 | 4.5 | |
| Wind | ≤1.5 | 35.9 | 21.0 |
| >1.5 to ≤15 | 28.1 | 21.0 | |
| >15 to ≤100 | 25.4 | 21.0 | |
| >100 to ≤500 | 20.7 | 17.5 | |
| >500 to ≤1500 | 10.4 | 9.5 | |
| >1500 to ≤5000 | 4.9 | 4.5 | |
| Anaerobic digestion | ≤250 | 14.7 | 14.7 |
| >250 to ≤500 | 13.7 | 13.7 | |
| >500 to ≤5000 | 9.9 | 9.0 | |
| Micro-CHP | ≤2 kW | 11.0 | 12.5 |
These tariff levels are indicative only. Official tariff rates for 2012/13 will be calculated and published by Ofgem by 1st March 2012.The Government is also consulting on whether the new requirement for an EPC Band D or better which is being introduced for solar PV installations from 1st April 2012 should be applied to other technologies supported through the FIT. They state that "We proposed to revisit this question in the future, in the light of emerging policy on energy efficiency and the Green Deal."
FAQs, further information and tools
The Energy Saving Trust has developed a Solar Energy Calculator which includes the newly proposed rates of 21p/kWh. This calculator will let you see how much you could generate and earn both before and after the proposed changes. For renewable energy technologies that are eligible for FITs other than solar PV you should use our cashback calculator. Use the Solar Energy Calculator. Use the Cashback Calculator. Find out what other renewable technologies may be suitable for you by using the Home Energy Generation Selector.
Scotland
In Scotland, zero-interest loans are available to householders towards the cost of installing renewables systems. Loans of up to £2000 are available with a maximum repayment period of 4 years. In some areas zero-interest loans of up £4000 are available for electricity generating renewable technologies. Find out about financial support available towards the cost of installing solar PV in Scotland.
For free, independent and impartial advice, you can also speak to one of our advisers over the phone: just call 0800 512 012.
What is the definition of the eligibility date?
- The eligibility date is the date from which an installation becomes eligible for FITs payments
- For the vast majority of renewable electricity systems (all that have a declared net capacity of 50kW or less), this will be the date your FIT supplier (also known as the FIT licensee) receives a valid application for FITs. This will be after the date on which your renewable electricity system is installed
- It is therefore essential that consumers ensure their application is sent to their FIT supplier promptly. For absolute certainty consumers should consider sending applications via special delivery
- Find a list of FIT suppliers at the Government's OFGEM site
- We recommend you contact your FIT supplier as soon as possible to confirm the requirements above and make sure you know exactly what information they require from you and when they need to receive it by.
