Solar PV

Solar PV - Solar PV Tariffs - Feed in Tariffs

The UK government feed in tariffs scheme requires energy suppliers to make regular payments to homes and businesses who generate their own electricity from renewable or low carbon sources such as Solar PV

Solar PV Tariffs

Building Integrared Photovoltaics - Solar Power TariffsSolar PV - feed in tariffs is a UK government sponsored incentive scheme designed to encourage the introduction of renewable energy sources. Under the Solar PV - feed in tariffs scheme, an obligation is imposed on regional or national electricity utility companies to buy renewable energy electricity.

Solar PV Tariffs - Solar PV Installations

Power generated will be used by the property thereby reducing the electricity bills. If more power is generated, the surplus will be exported to the National Grid and the electricity supplier will be paid for the excess.

If you are eligible to receive Feed in Tariffs you will benefit in three ways:

  1. Generation Tariff - a set rate paid by the energy supplier for each unit (or kWh) of electricity you generate. This rate will change each year for new entrants to the scheme (except for the first two years), but once you join you will continue on the same tariff for 25 years in the case of Solar Electricity (PV).
  2. Export Tariff - you will receive a further 3p per kWh from your energy supplier for each unit you export back to the electricity grid, that is when it is not used on site. The export rate is the same for all technologies.
  3. Energy Bill Savings - you will be making savings on your electricity bills, because generating electricity to power your appliances means you do not have to buy as much electricity from your energy supplier. The amount you save will vary depending how much of the electricity you use on site.

Solar PV Tariffs - Levels in Pence per Kilowatt Hour (p/kWh) in 2011/March 2012

Technology Type
Scale of Technology
01/04/11
Tariff (Years)
Solar PV 0 to 4 kW ( New- Build) 37.8p 25
Solar PV 0 to 4 kW (Retro-fit) 43.3p 25
Solar PV 4 kW to 10 kW 37.8p 25
Solar PV 10 kW to 100 kW 33.9p 25
Solar PV 100 kW to 5 MW 30.7p 25
Solar PV Stand Alone System 30.7p 25

Solar PV Tariffs - Government Reviews

Proposals to reduce the financial support available to larger solar-produced electricity have been published by the Government, as part of plans to protect electricity financial support for homes, communities and small businesses.

Solar PV Tariffs - Fast Track Review and Consultation

The consultation follows the launch in February 2011 of a fast track review into how the Feed in Tariffs work for solar photovoltaic (Solar PV) over 50 kW after evidence showing that there could already be 169 MW of large scale solar capacity in the planning system. This would be equivalent to funding solar panels on the roofs of around 50,000 homes, if tariffs are left unchanged.

Such projects could potentially soak up the subsidy that would otherwise go to smaller renewable schemes or other technologies such as wind, hydro and anaerobic digestion. Projections at the start of the scheme had shown no large scale Solar PV under the Feed in Tariffs scheme was expected until at least 2013.

Solar PV Tariffs - Rebalancing the Scheme

The revised proposals aim to rebalance the solar power tariffs scheme and put a stop to the threat of larger scale Solar PV projects soaking up the cash

As Solar PV technology has developed, its costs have reduced and are now believed to be around 30 per cent lower than originally projected. This means the technology does not need as much support to be competitive. The Government is therefore proposing to reduce the support for all new Solar PV installations larger than microgeneration size (50 kW) and stand-alone installations. The new proposed rates are:

19p/kWh for 50kW to 150kW
15p/kW for 150kW to 250kW
8.5p/kW for 250kW to 5MW and stand-alone installations

Subject to the outcome of the consultation and parliamentary scrutiny, the revised tariffs would be introduced from 1st August 2011

Solar PV Tariffs in-line with Europe

Such changes are in line with amendments made to similar schemes in Europe where in Germany, France and Spain tariffs for Solar PV have been reduced sharply over the past year.

Before investing in renewable or low carbon energy systems it is important to make sure the building is as energy efficient as possible, so that the energy generated is not wasted

Home and business owners considering generating their own electricity should look at the Energy Saving Trust’s Clean Energy Cashback webpages for more information on energy efficiency measures as well as taking independent advice on the technologies concerned.

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