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Government confirms cut to solar FiT incentives

Posted on: 2011-10-31 12:58:22

The government has now confirmed the slash to solar incentives by more than 50 %, cutting the feed-in tariffs available to domestic and small-scale business installations, from 43p per kWh to 21p per kWh.  The reduced tariffs may come into force as early as 12 December.

The proposals mean that new tariffs would apply to all new solar PV installations with an eligibility date on or after 12 December 2011, receiving the current tariff before moving to the lower tariffs on 1 April 2012.  However, the consultation closes on the consultation on 23 December which means there may be change.

The consultation also proposes a whole-house approach - a new energy efficiency requirement that would mean any household or business applying for feed-in tariff incentives from April next year would have to meet minimum energy efficiency standards.  It is possible that standards could include ensuring the building has an Energy Performance Certificate level of C or above, or requiring people to take up Green Deal measures before they can install solar panels.

Transitional arrangement on installations with eligibility dates between 1 April 2012 and 31 March 2013 would have 12 months from entering the feed-in tariff scheme to comply with the energy efficiency requirement.

For PB Energy’s view on the FiT cuts, with 8 good reasons for a bright future for Solar, please see link: