Feed in Tariff Regressions in Effect from April 2015February 5, 2015
Feed in tariff rates for bands less than 10 kWp and above 50 kWp are set to reduce by 3.5% from April 1st for new installs from this date. The regression comes following a high level of solar pv deployment in Q4 for the 0 – 10 kWp bands, satisfying Ofgem’s trigger to marginally regress financial support from the tariff.
Similarly, the rates for bands over 50 kWp will also reduce by 3.5%. Although solar pv deployment hasn’t reached levels in Q4 to qualify for a reduction, the rules are that if a particular band hasn’t regressed in 9 months, these bands automatically trigger a 3.5% reduction.
Installs that fall in the >10 to 50 kWp band are unaffected and will keep the same rate.
With the Retail Price Index (RPI) tracking inflation, the export rate will consequently increase from 4.77p per kWh to 4.85p. The table at the bottom of this page shows the new feed-in-tariff rates from 1st April.
What does this mean to those already with solar pv installations?
If you already have a solar pv installation, the good news is that your rates will have been fixed for the duration of your feed-in-tariff term when you installed so you will be unaffected by the changes in April, and indeed, by any future changes.
Are the reductions bad news for new installs?
If your installation and feed in tariff submission confirmation happens before 1st April, you will still qualify for the current rates. Any installs after this date will fix in with the new rates, however, the reductions are delivered at a level (3.5%) to avoid having huge impacts, although smaller installations – such as residential, typically at 4 kWp – will be less effected compared to larger installations over the total feed-in-tariff period.
If solar is on your agenda, the advice is to install as soon as possible to ensure you receive the maximum feed-in-tariff support over the life time of the tariff (20 years) as rates are reviewed every 3 months and regress due to high levels of deployment (for a particular band) or trigger automatically if there have been no changes in the rate for 9 months (3 review periods).
|Tariff Band||Current||1st April|
Categorised in: Industry News