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Update on FITs for Solar PV

Following DECC’s consultation on FIT rates for solar PV, the following changes will be implemented from 1st August 2012:

  •  The tariff for small domestic solar installations will be 16p/kWh, down from 21p, and will be set to decrease on a 3 month basis thereafter, with pauses if the market slows down.
  •  All tariffs will continue to be index-linked in line with the Retail Price Index (RPI) and the export tariff will be increased from 3.2p to 4.5p. The new tariffs should give a return on investment of over 6% for most typical, well-sited installations, and up to 8% for the larger bands.
  • Tariffs for larger installations will also be reduced to reflect cost reductions but most tariff cuts will be lower than proposed in February. 
  • Organisations with more than 25 solar PV installations will get 90% of the standard applicable tariff, increased from 80%, reflecting new evidence on costs involved for these projects.
  • New solar installations will receive the FIT for a reduced lifetime of 20 years (previously 25 years).

For further information...

 

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