Feed In Tariff Rates Confirmed by Ofgem for January 2015November 6, 2014
From 1st January 2015, Ofgem has confirmed that all tariff bands for new installs below 50kWp will reduce by 3.5%. The reduction was expected after these bands have not reduced for 9 months, which automatically triggers a reduction. All tariff bands above 50kWp remain frozen at the current prices shown in the table below.
The feed-in tariff rates are reviewed every 3 months by Ofgem and are linked to deployment growth for each tariff band. When a particular tariff band has shown sufficient growth in that period, a lower rate is introduced for new installs in the following period.
Ofgem also propose that a particular tariff band cannot be frozen for more than 9 months, which is what has forced the reduction for the below 50kWp categories from 1st January.
|Tariff Band||Jan-Mar 2015||Current|
Sadly, despite the anticipated growth in solar for 2014, deployment figures haven’t been as high as predicted which is why we haven’t seen many tariff bands reduce this year through deployment. However, more positively, in the previous quarter (Jul-Sep) the domestic market in particular has shown some good growth and would have been enough to reduce the rates regardless even if the 9 month ‘trigger’ hadn’t been reached. It is also predicted that deployment will continue to grow well before the fit reductions, which for the average 4kWp domestic installation will only equate to a reduction of around £20 per year in feed-in tariff payments.
Categorised in: Industry News