British feed-in tariffs for "larger" solar installations dramatically cut

09. June 2011 | Global PV markets, Markets & Trends, Top News | By:  Jonathan Gifford

BREAKING NEWS: The feed-in tariff (FIT) rate for installations larger than 50 kilowatts (kW) has been dramatically cut as the results of the British Government’s fast-track review of the scheme are made public. Renewable Energy Association and Solar Industry Association react angrily to the changes.

A photo of the United Kingdom flag.

Deep cuts to photovoltaic feed-in tariffs for larger installations announced today. Image: Flickr/Jax60.

In the changes, released today, from August 1 2011, new entrants into the FIT scheme will receive drastically reduced tariffs. Installations worth 50 kW to 150 kW will receive 19 pence per-kilowatt-hour (p/kWh), between 150 to 250 kW 15 p/kWh, between 250 kW to 5 MW and stand-alone installations 8.5 p/kWh.

The previous categories for FITs were delineated differently making direct comparisons difficult, however the cuts for installations between 50 kW and 150 kW are in the region of 23.3 p/kWh or 73 percent. For installations between 250 kW to 5MW and all stand-alone installations, again taking into account the changes to FIT categories used by the government, the decrease is of more than 20 p/kWh or 72 percent.

Announcing the changes, Energy and Climate Change Minister Greg Barker said that the changes are necessary to support smaller scale installations. "Without action the scheme would be overwhelmed. The new tariffs will ensure a sustained growth path for the solar industry while protecting the money for householders, small businesses and communities."

The British Renewable Energy Association (REA) has slammed the changes and handling of the affair. Chief Executive Gaynor Hartnell said in statement, "larger-scale photovoltaics has been demonized, when it is the most cost-effective approach. The logical approach would have been a 25 percent reduction across the board."

The FIT review results were announced along with a government commitment to supporting Anaerobic Digestion energy production, which was welcomed by REA.

The Solar Trade Association (STA) has also reacted angrily to the deep FIT cuts. Blaming the British Treasury department for the severity of the cuts to larger scale solar installations, STA Chairman Howard Johns released a statement. "Treasury have crippled the Department of Energy and Climate Change’s (DECC) ability to respond to major developments in solar and DECC itself hasn’t got to grips with this technology."

pv magazine has completed an exclusive roundup of FIT schemes worldwide.

To leave a comment you must first sign in or register your details

Displaying results 1 to 1 out of 1


Friday, 10.06.2011 11:22

I think Obama has made a great publicity stunt to promote cleaner energy with the installation of solar panels on The White House. I would like to see the UK government and other nations embark on similar campaigns to promote a greener environment and further boost the sale of solar panels.

Daily newsletter

Keep your finger firmly on the photovoltaic pulse: sign up for our daily newsletter

Magazine subscription

Choose between a digital and print subscription from pv magazine's online shop. A non-subscriber? Check out our sample articles.

Press releases

Want to publish your press releases for free? Simply log in or register, enter the information you want to appear and we'll publish it for you!