Cuts to solar feed-in tariffs

Stringent cuts in the financial incentives to support  solar photovoltaic installations over 50kW in capacity have been confirmed by DECC. Last month a fast-track review of solar feed-in tariffs was announced over concerns that larger solar farms would be taking the lion’s share of funding at the expense of domestic and community installations.

The cuts come after evidence showing that there could already be 169 MW of large-scale solar capacity in the planning system – equivalent to funding solar panels on the roofs of around 50,000 homes if tariffs are left unchanged.

The new proposed rates are:

  • 19p/kWh for 50kW to 150kW
  • 15p/kWh for 150kW to 250kW
  • 8.5p/kWh for 250kW to 5MW and stand-alone installations

These compare with the tariffs that would otherwise apply from 1 April of:

  • 32.9p/kWh for 10kw to 100kw
  • 30.7/kWh for 100kw to 5MW and stand-alone installations

Solar tariffs under 50MW are not affected by this fast-track review.

Revised tariffs have been proposed for anaerobic digestion following a short study that found the lack of uptake of FITs for farm-scale anaerobic digestion was down to too low tariffs.  The proposed new tariffs are:

  • 14p/kWh for AD installations with a total installed capacity of up to 250 kW
  • 13p/kWh for AD installations with a total installed capacity of between 250 kW and 500 kW

These compare with the tariffs that would otherwise apply from 1 April of 12.1p/kWh for AD up to 500 kW.

The Consultation on fast-track review of Feed-in Tariffs for small-scale low-carbon electricity closes on 6 May.

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