Feed in Tarrif

The Feed-in-Tariff provides the index-linked payments from the energy suppliers to the system owner. Payments are made for each Kwh generated by a renewable energy system, including PV systems.

The Feed in Tarrif is the name for the UK government scheme where homeowners, business and organisations (e.g schools) receive payments for electricity they generate through small-scale renewable energy installations e.g. solar panels.

The new Feed in Tariff rates

The rate of the Feed in Tarrif paid for installing solar panels will be cut from 43.3p per kilowatt hour of solar electricity to just 21p per kilowatt hour after 12th December 2011.

Those whose solar PV installations are installed before the cut-off date of 12th December 2011 will get the current higher rate of 43.3p per kilowatt hours.

There is still some uncertainty about rates paid on installations fitted between 12th December 2011 and 3rd March 2012 because it is not yet clear whether the Government will appeal. However, the minimum tariff that people installing in this period will get is 21p, and if Government decides not to appeal (or if it eventually loses its appeals) then they would get the 43.3p rate. There is speculation that Government will appeal to prolong the uncertainty in the hope it will put some consumers off - but no doubt DECC will be setting that against the political damage done to them by yet another defeat and the image of a Government refusing to accept it has got it wrong and working to make amends. [Source: Our Solar Future]

The Feed in Tariff rate after 3rd March 2012

Installations completed after the after 3rd March 2012 will just get the lower rate of 21p per kilowatt hour.