Solar PV FIT cuts confirmed

Payments under the feed-in tariff (FIT) scheme for domestic-scale solar photovoltaics (PV) are to be cut every three months from 1 August, DECC has confirmed

While FIT payments for small solar installations are to be cut, community-size projects and those exporting energy to the grid are to receive higher subsidies.

Following DECC’s latest consultation on the FIT scheme, the energy department has published the tariffs for the remainder of 2012/13.

The smallest installations (less than 4kW) receive the biggest cut in tariff, down to 16p per kilowatt hour (kWh) from 21p/kWh, while larger installations (more than 50kW) and standalone installations see rates cut by 10%–20%.

DECC also confirmed that installations registered from 1 August will receive payments for 20 years, rather than 25 as currently, and that subsidies for buildings that fall below an energy efficiency rating of D will receive the lowest tariff rate of 7.1p/kWh.

Other changes include a higher tariff for projects with more than 25PV panels (90% of the standard tariff rate, up from 80%), and an increased rate of 4.5p/kWh for electricity exported to the national grid.