Feed-in Tariff (FiT) rates drop by 3.5% on 1 July 2015
Ofgem have confirmed that the Feed-in Tariff (FiT) rates will be reduced by 3.5% on Wednesday 1 July. The new figures mean the tariff will sit at 12.92p/kWh for a 0-4kWp system. These changes come as part of the normal quarterly reviews when tariffs are adjusted based on installation activity.
FiT rates from 1 July 2015
The numbers outlined below will apply to solar PV installations with an eligibility date on or after 1 July 2015.
The export tariff will remain the same at 4.85p/kWh meaning a good return for homeowners producing any excess energy they can sell back to the grid. You can see a full table of solar tariff rates here.
28% FiT rate reduction for small solar farms
Whilst the change to FiT rates for domestic solar is small at just 3.5%, there has been concern over the much larger drop in rates that applies to small solar farms. They will see a significant 28% reduction from 6.16p/kWh to 4.43p/kWh. Edie has explained that this was caused by a ‘hyperdegression’ in the tariff for ground-mounted solar, due to so many installations in the first quarter of 2015.
This shouldn’t cause concern for homeowners as it will not affect domestic, roof mounted systems. It will however mean that small solar farms, many of which would have had shared ownership with local communities, are less likely to be built going forward.
How to get the new domestic FiT rates
In order to get these new FiT rates locked in for 20 years, make sure to have your solar array installed before 1 October 2015 when the new set of figures will be released. The installation of solar PV panels is currently at the lowest price it has ever been, so now really is the best time to go solar.
Make sure to use an MCS accredited firm to qualify and benefit from the government’s FiT payments. You can get free, no-obligation quotes from registered installers using Solar Guide’s simple online form.