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Breaking news: FiT to be cut to 16p on 1st August

Date added: 24 May 2012

FiT will now only be for 20 years - but export rates increased

Greg Barker has just made a statement about the FiT cuts in parliament. Here is a summary of the changes, that will take effect from 1st August:

  • The FiT rate for systems under 4kW will be cut to 16p from the 1st August
  • The rate for larger systems will also be cut, but by a smaller amount. The new bands are:
    • 14.5p for 4 to 10kW
    • 13.5p for 10 to 50kW
    • 11.5p for 50 to 150kW
  • The FiT will now only be payable for 20 years - not 25 years
  • There will be a cut in FiT rates every month, and the depth of the cut will depend on the number of installations in the previous three months. For the 0-10kW tariff bands, there will be NO CUT if deployment is less that 100MW. If it is between 100 and 200MW, there will be a 3.5% cut; if between 200 and 250MW the cut will be 7%; between 250 and 300MW the cut will be 14%, and if over 300MW is installed the cut will be 28%
  • The export tariff will be increased to 4.5p
  • They've backtracked to some extent on the cuts to FiTs for multiple installations - they will now be at 90% of the usual rate, rather than the current rate of 80%

The link with RPI will be maintained.
Some of this is good news, and DECC have clearly listened to some of our points in the consultation. We certainly welcome the small increase in the export tariff, and the mechanism for digression is much more sensible than what they originally proposed. We can also perhaps expect larger commercial systems to make up bigger proportion of installations from now on, as the rates for big systems have been cut less than for small systems (we do have some particularly good prices on 50kW kits if you are interested - get in touch!)

You can download the full statement from DECC from our website

Source: Certainty for Solar - DECC website