Massive reduction to UK feed-in tariff

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Massive reduction to UK feed-in tariff

Postby sunshine101 » 28.10.2011, 00:53

According to a PDF available on the Energy Saving Trust website the PV feed-in tariffs in the UK are set for a large reduction.

http://www.energysavingtrust.org.uk/Med ... rrif-rates

According to this document the current rate of 43.3 p/kWp (for generated energy by <4 kWp installations) shall be reduced to 21 p/kWp for all new installations from 8 Dec 2011 onwards.

The changes still have to be approved by Parliament.
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Re: Massive reduction to UK feed-in tariff

Postby wieso » 28.10.2011, 04:16

Hi Sunshine

I found this document as well today

It sounds a tough cut for installers , solar economy

i thought there was a reduction planned for spring 2012 ? , but now it comes earlier and halved
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Re: Massive reduction to UK feed-in tariff

Postby valentino » 28.10.2011, 08:25

Hello Sunshine,

these are tough cuts. :shock:
Can you imagine the reasons for this cuts? Can there be cuts expected for installations >4 kWp as well? Does the government just want to save money because it does not see a future for pv in the UK? Or wants it systems >4 kWp to be installed by cutting only (?) FIT for installations below 4 kWp?? Many questions.

Looking forward to your answer...

kind regards
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Re: Massive reduction to UK feed-in tariff

Postby sunshine101 » 28.10.2011, 09:38

valentino wrote:Hello Sunshine,

these are tough cuts. :shock:
Can you imagine the reasons for this cuts? Can there be cuts expected for installations >4 kWp as well? Does the government just want to save money because it does not see a future for pv in the UK? Or wants it systems >4 kWp to be installed by cutting only (?) FIT for installations below 4 kWp?? Many questions.


The UK feed-in tariffs (FITs) were introduced in April 2010, and the PV industry is still in its infancy.
Despite the experience in other countries the UK FITs were poorly designed. The initial tariffs were very generous, review periods vague and poorly executed.
The actual return per kWh has not been fully predictable.

Firstly, while the FITs are actually paid for by all consumers, there are certain caps in place (and their numbers have already been adjusted)
http://www.guardian.co.uk/environment/2 ... -subsidies

Secondly, the FITs are inflation adjusted, i.e. will (usually) go up for EXCISTING installations.

Thirdly, the FIT payment period spans 25 years.


Most of the FITs are being paid for GENERATION of PV electricity, independent of whether the electricity is fed into the grid or self-consumed (In this sense FIT is a misnomer).

In addition to the 41.3 p/kWh mentioned above (generation), an additional 3.1 p/kWh is paid for electricity delivered to the grid (export).



A reduction of the FITs was long overdue.
For installations > 50 kWp the tariffs were already reduced drastically in Aug 2011

A moderate reduction for all installation had been scheduled for April 2012 in any case.

The now-proposed reductions will supersede the scheduled reductions. They certainly will affect all installations up to 50 kWp, however the details for >4kWp installations are unclear.

The proposed reductions still need approval by parliament.
There is still a change to correct the design flaws of the current FIT system and to moderate the cuts or their timeline.
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Re: Massive reduction to UK feed-in tariff

Postby sunshine101 » 28.10.2011, 11:19

The original PDF is no longer available form the Energy Saving Trust website.

A copy can now be found here
http://www.itcreation.co.uk/navitron/newfit.pdf

Probably the announcement was not supposed to go public at this time. Will be interesting to see how this develops.
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Re: Massive reduction to UK feed-in tariff

Postby sunshine101 » 28.10.2011, 14:37

It has been confirmed that the original PDF was not supposed to be publicly available.

http://www.energysavingtrust.org.uk/Abo ... tober-2011

Nevertheless, the wording of the press release stipulates that the reductions as outlined are essential the government plans that are expected to be presented to Parliament.

There is clearly a government trying to come to grips with the future of PV.
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Re: Massive reduction to UK feed-in tariff

Postby valentino » 31.10.2011, 09:47

Hello sunshine101,
thanks for your response. Very interesting.
I will keep an eye on that.
What is the general attitude in your country regarding PV and the governmant according to PV?

kind regards
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