Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Solar energy project subsidy rates slashed by government

The Department for Energy and Climate Change (Decc) has proposed plans to slash feed-in tariffs (Fit) for small scale solar developments by over 50%.

Decc’s proposals, now subject to consultation, will introduce a new tariff for schemes up to 4kW in size of 21p/kWh, down from 43.3p/kWh. Reduced rates are also proposed for schemes between 4kW and 250kW (see below).

Climate change and energy minister Greg Barker said he wanted to avoid “boom and bust” in the solar photo-voltaic industry. “The plummeting costs of solar mean we’ve got no option but to act so that we stay within budget and not threaten the whole viability of the Fits scheme,” said Barker.

Barker added that although he “fully realised” adjusting to the new tariff would be a big challenge for many firms, the large drop in the cost of solar panels has increased companies’ rate of return. Fits were introduced last April, but the large uptake of schemes, combined with the drop panel costs, has led to a government review of the scheme.

Solar Feed-in Tariffs

Band (kW)Current generation tariff (p/kWhProposed generation tariff (p/kWh)
≤4kW (new build)37.821.0
≤4kW (retrofit)43.321.0
stand alone8.58.5

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Please note comments made online may also be published in the print edition of New Civil Engineer. Links may be included in your comments but HTML is not permitted.