FIT changes delayed
25 May 2012
The government has announced that the next round of cuts to the solar feed-in tariff (FIT) will be postponed beyond the original July timetable.
Energy minister Greg Barker revealed the tariff will fall from its current level of 21p per kilowatt hour (kWh) to 16p per kWh from 1 August.The government also revealed the FIT will now decrease on a three-month basis, with “pauses” if the market slows down.
“All tariffs will continue to be index-linked in line with the Retail Price Index (RPI) and the export tariff will be increased from 3.2p to 4.5p,” the energy department said.
It also claimed the new tariff will give over 6% returns on investment for most typical installations, and over 8% for larger deals.
“The sector has been through a difficult time, adjusting to the reality of sharply falling costs, but the reforms we are introducing today provide a strong, sustainable foundation for growth for the solar sector,” said Barker.
The 21p level of the tariff was only brought into force in April this year, following a legal battle after the government first tried to halve the tariff back in December.
