Reduction in Feed-in-Tariff

The Department of Energy and Climate Change (DECC) has announced a fast-track consulation on the Feed-in-Tariff (FIT) subsidy for solar pv installations.  For domestic solar installations (less than 4 kWp) a reduction from 43p to 21p is being proposed.  This would reduce the return on investment from 8-10% to 4-5% and the pay-back period from 16 years to 8 years.  Householders will also be asked to demonstrate a minimum level of energy efficiency, e.g. a C rating on an Energy Performance Certificate though the details of this are still under consideration.  You can find out more at

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2 Responses

  1. 1. The propsed cut in Feed In Tariff from 43.3p to 21p/kW from April Ist is draconian & greater than 50% since the 43.3p figure will rise with CPI from April. A 30% reduction would be acceptable >50% is not.

    2. Registration for new systems must be completed by December 12th & this means that virtually all installations started after November 1st will fail to meet this target since registration can take 6-8 weeks partly due to Government Dept involvement. My recently completed home installation took 40 days to be registered. Far fairer would be a registration completion date of March 12th 2012. The existing proposal could kill off 80% of solar instalation firms immediately.

    3. To have a registration completion date two weeks before the end of the consultation document appraisal period cannot be legal.

    4. Currently for home systems of less than 4kW output the energy companies pay an exit tariff of 3.1p/kW, whereas my company charges me 11.1p/kW I use. Surely there is a case for raising the exit tariff rate to 6 or 7p/kW & payable on 75% of our production rather than the current 50% which doesn’t reflect the reality of the situation.

    5. The majority of the population are lukewarm over green energy saving proposals, but for home solar panel installations there has been tremendous enthusiasm. The current tariff reduction proposals will kill this off.

    6. Finally why the moral objection to the existing generous tariffs for home solar panel installations when landowners who install wind turbines are paid subsidies at an obscene level. “Joe Bloggs” is not to be allowed to profit, but “Lord Joe Bloggs” is. This is discimination.

    David Shepherd

  2. Interesting comment. We’re a local company providing energy efficient products and services including solar PV. Although, it still is cost effective to install PV, even after the severe reduction in tariff, the general public is confused and understandably mistrustful.The government’s move has indeed damaged public opinion and seemingly led to a new wave of apathy.It would be good to share info with any other companies about reassuring customers.

    We have noticed that our market is not necessarily within the ‘green’ communities at the moment but more within those domestic households who spend money carefully, plan ahead and have access to finance. Accountants make up a significantly high percentage of our client base! Solar PV still allows home-owners to be the king of their own castles, in charge of their fuel destiny.

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