Government confirms new Feed-in Tariff rates from January 2016

The Government has today published their response to the review of the Feed-in Tariff. Read the full document here.

The new tariffs and cap system will begin on the 8th February. The current scheme will pause on 15th January, meaning that no new projects will be accredited during this time with the exception of those pre-accredited before 1st October. So, in reality this means the current rate will cease on 15th January.

The new rates for Solar Panels from 8th February will be:

<10kWp = 4.39p

10 -50kWp = 4.59p

50-250kWp = 2.70p

250-1000kWp = 0.87p

Stand alone 0.87p

The Feed-in Tariff rates will be subject to a default degression, at a rate of 5% each quarter.

The government will be introducing deployment caps, which will apply from 15th January and will limit installations to approximately 15,000 installations per quarter in the sub 10kWp category.

Pre-accreditation for projects over 50kW will come into effect again from 8th February.

There will be no extensions to Solar PV systems allowed after 15th January.

There is no change to export tariff.

Properties will now require an EPC level D, prior to the installation of solar panels, which means the solar panels can no longer contribute to this rating.

The initial consultation, which ran from 27 August to 23 October, originally set out to cut the Feed-in Tariff rates by as much as 87%. Today’s announcement represents a 64% cut. The consultation also proposed to enact quarterly installation capacity caps and ultimately withdraw subsidy support on 1 January 2019. It received more than 55,000 responses and was widely condemned by the industry, the general public and politicians alike.

Advice for homeowners

EnergyMyWay has availability to install and commission your solar panels before 15th January, so you can still secure 20 years of tax-free payments from the Feed-in Tariff at the higher rate of 12.47p/kWh. Please don’t delay in contacting us if you don’t want to miss out. Call 0845 371 3181 or find your nearest EnergyMyWay.

James Eades

By: James Eades

Operations Director, James Eades is EnergyMyWay's in-house expert on renewable energy policy, microgeneration technologies and best practice in the renewable energy industry.