Financial Incentives
There are various different financial incentives which have been provided by the Department of Energy and Climate Change (DECC) to encourage solar installations both for household and non-domestic use. See below for a summary.
Feed In Tariff (FIT)
On the 31st October 2011, DECC announced a review of the solar pv tariff within the FIT which will run until 23 December 2011.
The proposals are subject to an eight-week consultation period which if implemented would introduce a new tariff for schemes up to 4kW in size of 21.0p/kWh – down from the current 43.3p/kWh. Reduced rates are also proposed for schemes between 4kW and 250kW. Under the proposals, the new tariffs would apply to all new solar PV installations with an eligibility date on or after 12th December 2011. Such installations would receive the current tariff before moving to the lower tariffs on 1 April 2012. Consumers who already receive a FIT will see their existing payments unchanged, and those with an eligibility date on or before 11thDecember 2011 will not have their tariffs reduced in April. As of the 19th January 2012, the new tariff proposals were published on the DECC website and are copied below :
| Band (kW Declared Net Capacity (DNC) | Current generation tariff (p/kWh) | New generation tariff from 1 April 2012 (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 |
For a full list of proposals set out in the consultation and more information on Feed In Tariffs, please see the link on the DECC website
FIT Review Important update from DECC (Phase 1 consultation): 19 January 2012
Press release from Climate Change and Energy Minister Greg Barker : 31st October 2011
FIT – Feed in Tariff information from DECC
Registered FIT licensed suppliers - confirmed list of FIT licensees from Ofgem
Renewable Heat Incentive (RHI)
The RHI is a tariff scheme payable to non-domestic energy users generating their own renewable heat. A range of technologies are supported including solar thermal.
The RHI is due to come in to force at the end of November 2011. Solar thermal installations are due to receive 8.5p per kWh generated for installations up to 200kWth for a 20 year period. Conditions apply, please see Ofgem RHI Guidance.
DECC plans to make further changes to the scheme in ‘phase 2’ which will include households. No consultation has yet been published, but DECC hopes to implement any changes in Autumn 2012. As an interim measure to support domestic renewable heat, the Energy Savings Trust (EST) is offering a one off Renewable Heat Premium Payment (RHPP) of £300 for commissioned solar thermal installations dated between 21st July 2011 and 31st March 2012. Please refer to the EST for eligibility. For more additional information, please see the links below.
Press release – link to DECC’s 10th March 2011
What is the RHI - link to EST website
What is the RHPP - link to EST website
Application form for RHPP – link to EST website