UK feed-in tariff drops by 87% 1st January 2016!

The UK government plans to implement massive 87% cuts to the solar PV feed-in tariff (FIT) in January 2016 – far larger than expected by anyone in the solar industry.

The feed-in tariff will drop for all sizes of solar installation. Small scale solar panel installations (such as installing solar pv on home roofs) will drop from 12.47p per kilowatt hour to 1.63p. Large standalone solar installs will change from 4.28p per kWH to just 1.03p per Kwh.

The drop in solar tariff means that anyone thinking of installing solar panels must do so before the January tariff drop or risk losing out.

News of the January feed-in tariff reduction was revealed in the consultation document released by the Department of Energy & Climate Change (DECC) and may even result in the DECC being wound up as a standalone department.In their impact assessment, the DECC accept that the proposed cuts in the solar tariff are likely to lead to a huge drop in solar installations.

“There is a risk that these changes – combined with the separate consultation proposals to remove pre-accreditation – may result in significantly reduced rates of deployment”

The Solar Trade Association has expressed anger at the news of the solar tariff reduction,

“We regret that proposals to suddenly cut tariffs combined with the threat of closure of the scheme next January will spark a massive market rush”

By the start of 2015 over 21% of the UK’s power comes from renewables, with over 700,000 homes generating their own power but Friends of the Earth believe the cut in the solar pv tariff will send UK energy policy massively in the wrong direction and prevent almost a million homes, schools and hospitals from installing renewable energy.

Scale Tariff Level (p/kWh) (on or after 1st July 2015)
Tariff Level (p/kWh) (on or after 1st Oct 2015) Tariff Level (p/kWh) (on or after 1st Jan 2016)
≤4kW (Higher Rate) 12.92 12.47 1.63
≤4kW (Middle Rate) 11.63 11.22 1.63
≤4kW (Lower Rate) 5.94 5.94 1.63
4-10kW (Higer Rate) 11.71 11.30 3.69
4-10kW (Middle Rate) 10.54 10.17 3.69
4-10kW (Lower Rate) 5.94 5.94 3.69
10 – 50kW (Higer Rate) 11.71 11.30 3.69
10 – 50kW (Medium Rate) 10.54 10.17 3.69
10 – 50kW (Lower Rate) 5.94 5.94 3.69
50 – 100kW (Higher Rate) 9.63 9.63 2.64
50 – 100kW (Middle Rate) 8.67 8.67 2.64
50 – 100kW (Lower Rate) 5.94 5.94 2.64
100 – 150kW (Higer Rate) 9.63 9.63 2.64
100 – 150kW (Middle Rate) 8.67 8.67 2.64
100 – 150kW (Lower Rate) 5.94 5.94 2.64
150 – 250kW (Higher Rate) 9.21 9.21 2.64
150 – 250kW (Middle Rate) 8.29 8.29 2.64
150 – 250kW (Lower Rate) 5.94 5.94 2.64
>250kW 5.94 5.94 2.28
Standalone 4.44 4.28 1.03
Export tariff 4.85 4.85

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