The solar industry has recently learned that Ofgem will be freezing the current Feed-in tariff (FiT) rates for installations falling within the forthcoming quarter; 1st October to 31st December 2014.
Due to the recent number of solar pv installations falling short of Ofgem targets to trigger a reduction, the rates will stay the same. However from 1st January 2015 we will see a reduction in the rates by a minimum of 3.5% for installs lower than 50kWp, although depending on install numbers, we could also see an decrease in higher bands.

For the consumer – both residential and commercial – it is good news that rates have been frozen for the next quarter, although rates will decrease from 1st January for some (if not all) system sizes. In contrast, for the solar industry, it is a sign that solar deployment still needs more support from the DECC to help stimulate growth above the current levels to help meet future renewable energy targets.
What does this mean for ‘existing’ installs from 1st January 2015?
This news will not effect anyone that currently has a solar pv installation – you will continue to receive the feed-in tariff rate that was given to you when you initially installed the system.
What does this mean for ‘new’ installs from 1st January 2015?
For the residential customer, if you now install after the 1st January, you will receive the reduced rate (rate to be confirmed). If the reduction is 3.5%, for the average 4kWp system this reduction will only be equivalent to £20 per year for electricity generation payments so there’s no need to panic.
However, suppose you are still keen to install before the end of the year to secure the current feed-in tariff rates. In that case, we advise that you don’t leave it too late due to installers closing during the festive period and also due to bad weather delaying installations: the feed-in tariff rate is dependent on your installation date, not your order date.
The above is also applicable to commercial customers with solar pv systems under 50kWp. For systems over this size, it is yet to be announced if there will be a reduction in the rate (which is dependent on the number of installations in the UK).