Important Changes to FIT tariffs


On the 17th of December DECC announced changes to the Feed-in Tariffs (FITs) scheme following a consultation. A pause to the scheme was introduced from the 15th January 2016 to the 7th February 2016 and from the 8th of February deployment caps were also brought into place. Each technology has a separate cap and degression band and is restricted to a set amount of applications per deployment period. Once a cap has been reached no further installations are permitted to receive the tariff rate applicable to the period. These caps work alongside a default depression set by DECC – if the cap is reached there is a contingent degression of 10% in the next cap period on top of the existing default degression.

This point has now been reached with the allotted 1.1 mW exceeded in hydro applications and a further degression has been triggered for next months FIT rate. Therefore from the 1st April to the 30th of June 2016 the rate will be 7.68 pence – a drop from the 8.54 pence given in February. All installations with pre accreditation dates that fall after the cap has been reached will be placed on hold and be queued for entry into the next tariff period. Assuming there is sufficient capacity available in the next period the installation will be eligible to receive the tariff applicable to that tariff period.

On a more positive note, the export tariff has risen more than predicted to a total of 4.91 pence per kilowatt and with the support of certain energy companies who are keen to use green energy this could be negotiated to be slightly higher.

You can keep up to date with tariff changes on the Ofgem website

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