DECC proposing to cut solar feed-in tariff rates by 87%

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DECC proposing to cut solar feed-in tariff rates by 87%


The Department of Energy and Climate Change (DECC) is proposing to cut the feed-in tariff rates for solar PV installations by as much as 87%.

Publishing the outcome of the long-awaited feed-in tariff review, the government is proposing deep cuts to all bands from 1 January 2016.

Below are the proposed generation tariffs for 1 January 2016:

Capacity Feed-in tariff rate (p/kWh)
0-10kW 1.63
10-50kW 3.69
50-250kW 2.64
250-1000kW 2.28
>1MW 1.03
Stand alone 1.03

The Feed-in Tariff (FiT) scheme was set up in 2010 to promote small-scale renewables by ensuring householders, communities or businesses are paid a set tariff by electricity suppliers for the power their projects generate.

Despite its success, government officials once again fear renewable energy subsidies are set to bust through the Treasury-imposed spending cap, known as the Levy Control Framework (LCF), pushing up “green levies” for bill payers. 

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