Solar PV Feed-in Tariffs FiTs from 2016

At the end of 2015 the government set in place major changes to the solar PV Feed-in Tariffs. This only applies to NEW installations after 15th January 2016 not to existing installations.

These officially start on the 8th of February, however, all applications from 15th January to 8th February will receive the new rate from 8th February onwards.

This rate – for new installs – will run until 31st March 2016, after this FiT rates will then start to drop on a quarter by quarter basis (mapped out until end March 2019). Note that the FiT rate that applies to you is the one at which you join the scheme, once you are in the scheme you stay at the rate at which you joined the scheme. The aim is to provide people who install solar PV with an effective return on their investment of 4.8%: for full information see the government consultation paper.

As well as reducing the solar PC FiT rates, the government has set a cap on total payments on the spend in each power band each quarter. This is to give the government more certainty in cash outflow over the next 3 years. If you apply for solar PV FiTs after the allocation for that quarter has been spent you will be put in a queue and the next month you will be eligible for that quarter’s rate (AND be able to claim back historic FiTs but at the new rate).

Although this seems like a blow to those intending to install Solar PV it delivers a better rate of savings than a savings account (especially taking into account the Export tariff which will remain at 4.85pkWh)