Closure of the Feed In Tariff
Solar PV installations commissioned after March 31st 2019 will no longer be eligible for support under the Feed In Tariff scheme.
The Feed in Tariff was introduced by the government in April 2010 to encourage the uptake of renewable energy, at both commercial, and domestic level.
The government believes its objective has been achieved – to date over 13GW (or 13,000MW) of solar PV (and 20GW of wind power) have been installed. Installation prices have halved over the last 10 years, and domestic solar PV systems are now accessible to many more people, At the same time both efficiency and technology have improved – so small or awkward roof spaces can now house viable solar PV systems where they could not previously.
If you also take into account current electricity prices, an average solar PV system will still pay for itself in a little over ten years. Panels last for several decades, so it is not a difficult decision to make!
Minimum Export Guarantee
The government plans to replace the Feed In Tariff with a ‘Minimum Export Guarantee’, meaning a guaranteed minimum price for electricity not used, but sent back to the grid. At the time of writing (April 2019), this scheme has still not been finalised, but we do know that it will be available for all solar PV installations commissioned since April 1st 2019.
In the meantime, Octopus Energy have started their own version, paying an export tariff of 5.5p to all generators who sign up as customers.
No doubt more energy companies will follow their lead….