Feed-in Tariffs & Renewable Heat Incentive (RHI)

The feed-in tariffs (FiTs) will pay a premium rate for electricity generated from renewable sources such as PV systems and small wind turbines fixed for up to 25 years. The feed-in tariff means that the payback period for solar PV systems and small wind turbines will drop significantly and net income will be reliably predicted.

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Solar PV Systems Feed-in Tariff (FiTs)

Band (kW)

Current generation
tariff (p/kW)

Proposed generation
tariff (p/kWh)

<4kW (new build)

37.8

21.0

<4kW (retrofit)

43.3

21.0

>4-10kW

37.8

16.8

>10-50kW

32.9

15.2

>50-100kW

19

12.9

>100-150kW

19

12.9

>150-250kW

15

12.9

>250kW-5MW

8.5

8.5

stand alone

8.5

8.5

 

These new tariffs may apply to all installations registered from 12th December 2011.

Although there is still some uncertainty over the government’s decision on Feed in tariffs, DECC has stated that the tariff rate for PV installations less than or equal to 4kW will not fall below 21p for installations with an eligibility date between 12th December and 31st march 2012.

If the Government wins on appeal, we are where we were before legal action began, i.e. the Government will consider all responses to its consultation proposals, including the proposal that a domestic system (up to 4 kWh) can expect to earn 21p from 1st April 2012.

If the Government does not win on appeal, then the 43p tariff remains in place for all registered installations until the Parliamentary process has concluded (expected to be 1st April 2012, possibly earlier).

Feed In Tariff Information

The Government is currently reviewing the Feed in Tariffs for both commercial and domestic customers. It has proposed a reduction in the subsidies for projects of between 4kW and 50kW from 32.9p to 15.2p / kWh and to 21p for solar installations of up to 4kW in size, down from the current 43.3p/kWh. Confusingly, that whilst the original tariffs will no longer be available from 12th December, the new tariffs can only be confirmed after the government consultation period that finished on 23rd December 2011. Please see our website following this date for confirmation of the proposed rates.