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Reduced UK feed-in tariffs for solar PV and anaerobic digestion announced

The UK has announced its new, reduced solar photovoltaic (PV) feed-in tariffs for systems larger than 50 kW.

By Renewable Energy Focus staff

The new tariffs, which also includes tariffs for anaerobic digestion, will come into effect for new installations from 1 August. The change will not affect existing projects.

UK Energy and Climate Change Minister, Greg Barker, says: “I want to drive an ambitious roll out of new green technologies in homes, communities and small businesses and the FiT scheme has a vital part to play in building a more decentralised energy economy.

“We have carefully considered the evidence that has been presented as part of the consultation and this has reinforced my conviction of the need to make changes as a matter of urgency. Without action the scheme would be overwhelmed. The new tariffs will ensure a sustained growth path for the solar industry while protecting the money for householders, small businesses and communities and will also further encourage the uptake of green electricity from anaerobic digestion.”

The Department of Energy and Climate Change (DECC) says the number of planned ‘large-scale’ solar PV projects – i.e. projects over 50 kW – would have overwhelmed the system very quickly. It projects that a 5 MW solar PV installation under the previous tariff would have coast around £1.3 million per year.

Tariffs from 1 August:

Solar PV (total installed capacity – TIC)
>50 kW - ≤150 kW £0.19/kWh
>150 kW - ≤250 kW £0.15/kWh
250 kW - 5 MW £0.085/kWh
Anaerobic digestion
≤250 kW £0.14/kWh
>250 kW - ≤500 kW £0.13/kWh

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Bioenergy  •  Photovoltaics (PV)  •  Policy, investment and markets