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Feed-in tariff changes in August

A new digressive feed-in tariff model for solar photovoltaics in the UK has come into effect today, after the Department of Energy and Climate Change announced the changes earlier this year.

Those who have bought into solar energy schemes will receive a lower rate of return, which has been reduced from 21p per kilowatt to 16 p per kilowatt for systems with a capacity of less than 4 kilowatts.

Not only will those feeding energy into the national grid receive lower rates, but the lifetime of FITs will also be shortened from 25 years, down to 20 years.

Subsidy cuts to this solar energy initiative will affect those who install solar panels from 1st August onwards.

Although these changes seem largely negative, there is an increase in tariffs from 3.2 p to 4.5p per kilowatt for households who export power, giving a boost to individuals who supply renewable energy to the grid.

Households and businesses alike will still also be able to make a return of around 9% on their investment.

This was posted in Bdaily's Members' News section by Miranda Dobson .