Solar PV deployment in the Feed-in Tariff Q1-Q3 2016

From 8th February 2016, deployment in the Feed-in Tariff (FiT) scheme is capped quarterly, with degressions in tariff levels if caps are met. Ofgem release weekly data on progress towards these caps, and we provide analysis on these data to our members.

This six-page analytical briefing is available to members, summarising deployment in the scheme to the end of Q3, and drawing out implications for our policy asks for government.

Some headline messages:

  • There has been an 83% reduction in average quarterly deployment of solar under the FiT Q1-Q3 2016 vs the same period 2015 (including Q4 2015 the reduction is 88%).
  • In total 40% of allowable capacity for solar under FiTs went unused over the period, which in combination with contingent tariff degressions means a large proportion of the budget is going unspent.
  • The domestic tariff is too low to sustain a healthy market, with over half the allocated capacity going unused, while deployment >50kW is also constrained likely due to uncertainty from frequent tariff degressions and a proposed increase in business rates.

Members can log in to download the briefing below.