The DECC’s changes to the feed in tariff: What does this mean for domestic installations?
The UK Government’s Feed In Tariff (FIT) scheme gives homeowners the opportunity to get paid for the electricity they generate through renewable electricity generating systems like PV (solar panels) and wind turbines. In addition to getting paid for the electricity generated (even if homeowners were to use it themselves) they could also save a significant amount of money on your electricity bills.

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Cuts are being made to the Feed In Tariff scheme.
Feed in Tariff was introduced back in April 2010 to replace the UK government grants as a financial incentive to encourage the uptake of renewable electricity generating technologies. Whilst the scheme seemed to be working pretty well and benefiting homeowners, the DECC (Department of Energy and Climate Change) has recently proposed a number of changes, which will negatively impact domestic installations.
Changes to Feed In Tariff
On 27th August 2015, the Department of Energy and Climate Change released a consultation on a review of the Feed In Tariff Scheme. The consultation outlined a number of proposed changes to the FIT scheme, which affect domestic-scale electricity generating renewable systems. Some of the proposals included:
- Amendment to the tariff bands and digression bands for new domestic installations of solar PV, wind and hydro technology.
- A default degression (reduction in tariff) for all new installations on a quarterly basis (3.5% degression rate for PV and 5% for hydro).
- Further quarterly degression of 0%, 5% or 10% for all technologies, dependent on the deployment rate.
- Move from Retail Price Index-linked tariffs to Customer Price Index-linked tariffs for new domestic installations.
Limiting the FIT budget
The DECC will also be limiting new spend under the Feed In Tariff Scheme to an overall budget of £75 – 100M from January 2016 to 2018 / 2019. Maximum deployment caps will be established for electricity generating technologies and the specific tariff bands.
Goodbye to the generation tariff
From January 2016, the generation tariff for new installations will be removed if the proposed cost control deployment caps are unable to make the scheme more affordable and sustainable. The DECC will also stop new extensions to existing installations from being eligible to claim FITs.
The key proposed changes are likely to come into force in January 2016. Those that have already installed electricity generating technology in their home and registered for FITs will not be affected. Similarly, if you install and register for FITs before the scheme changes go live, you will also be unaffected.

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If you are in the process of installing solar panels or plan to soon then you are unlikely to be affected by these cuts
So what does all this mean for domestic installations?
Those using rooftop solar panels to generate electricity will find that their annual payments via Feed in Tariff for by a great amount from £495 a year to just £60. This comes as a result of the DECC cutting the money paid to householders for the energy they generate from solar panels from 13p per kWh to just 1.63p.
Data compiled for Telegraph Money has shown that homeowners that decide to buy a new set of new solar panels could end up being £7.850 worse off. The calculations were made by the Energy Saving Trust, which looked at the 25 year lifetime of a typical solar panel system and how much return it would offer, in terms of Government payments and savings made on energy bills.
Changes spark outrage throughout the industry
The DECC’s changes to the Feed in Tariff scheme faced much opposition, however they still decided to go ahead and implement anyway. This decision has sparked outrage throughout the industry, with many people believing that the absurd cuts to solar and other electricity generating technologies will send the UK in the wrong direction; preventing millions of homes from being able to use clean, renewable energy.
What you can do
If you want to invest in electricity generating technology for your home, then you will need to act fast.
For more information or for an installation quote, please give us a call on 01789 450 314.
Image Credits: uSwitch and Lydia_shiningbrightly