Making Feed-in Tariffs Work

STA Policy Asks: Making Feed-in Tariffs Work

The Feed-in Tariff (FiT) is not working for the solar industry. In some FiT bands the quarterly deployment caps are too low, constraining meaningful markets. In other FiT bands the tariffs themselves are too low to stimulate investment. This is damaging the industry and its potential to drive down costs in future. We have therefore worked with our members to produce a series of logical improvements to the scheme that we would like to see enacted via a consultation in autumn 2016.

The two key objectives of our improvements are to:

  • Develop a meaningful commercial rooftop market

Previously identified by government as a strategic area of focus, with lots of cost-effective deployment potential, the current caps limit commercial bands severely. The capacity caps for the >50kW band must be increased. The increase can be part-funded by redistributing savings gained to date from sharper-than-expected tariff degressions against the budget to increase capacity in the >50kW band. This would be a one-off quarterly volume top-up at no extra cost.

  • Remove unnecessary barriers

Removing barriers to deployment such as the inhibitive EPC requirement and guaranteeing seamless eligibility for FiTs at the next available tariff would make the system simpler for installers, at no extra cost.

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