Worcester Renewables Ltd

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Tag: Payback Period

Government to Slash Feed-in Tariff for Solar PV

Energy Saving Trust FIT review fact sheet

Fact Sheet on the proposed changes to Solar PV Feed-in-Tariff rates

Last updated 26 October 2011


The UK Government is proposing to reduce Feed-in Tariffs (FITs) for new solar photovoltaic (PV) installations as part of their comprehensive review consultation. See  www.decc.gov.uk/fits

If you install solar PV and your FITs application is received by your FIT supplier (also known as FIT Licensee) on or after 8 December 2011, you could be affected by the proposals.

Please note that these proposals are currently under consultation and are therefore not final.

However, we recommend customers should use the figures in the consultation if they are planning to install after 8 December 2011.

Only PV systems are covered by the UK Government’s current FITs consultation. Other FIT-eligible technologies will be considered as part of the second phase of the comprehensive review due to be published shortly.

Summary of proposals

The UK Government proposals which affect householders most are:

  • A reduced rate of 21p/kWh for solar PV installations <4kW – tariffs will be introduced from 1 April 2012 and will affect all installations with an eligibility date on or after 8 December 2011. See definition of eligibility date below. This tariff rate is designed to provide householders with a rate of return of around 4%.
  • New domestic energy efficiency requirements – from 1 April 2012, domestic installations must be accompanied by an Energy Performance Certificate (EPC) with a level C or above/which has completed all „Green Deal. measures. Where a domestic property does not meet these energy efficiency requirements, the Solar PV installation may receive a lower tariff.

The table below compares typical income and savings made for an average sized solar PV system in the UK along with simple payback period (cost divided by combined income and savings)

FIT Rates Total annual earnings and savings with a 2.9kW system Simple payback (years)
Current 43.3p/kWh £1,190 10
Proposed 21p/kWh £    640 18
  • 2.9kWp system, install cost of £11,500
  • Total earnings and savings include income from the generation tariff, export tariff on 50% of total generation and up to 25% of generation used on site.
  • Simple payback will depend on capital cost so the simple payback periods may vary depending on quotes received. Cost of solar PV has come down significantly over the years so we would expect the simple payback period to come down gradually.
  • Annual generation has been calculated as 853kWh/kWp using the Energy Saving Trust Solar Energy Calculator (see below) using the postcode SW1A 0AA (Westminster Palace)

To find out more about how this will be implemented, please download the full fact sheet:


Don’t delay – contact us for a quote NOW

Worcester Renewables – Don’t miss your chance to see us at the CLA “SHINING A LIGHT ON PHOTOVOLTAICS” Thursday 27th January 2011

Worcester Renewables will be at the CLA “Shining a Light on Photovoltaics” (aka Solar PV)seminar on Thursday 27th Jnauary 2011 at Worcester Rugby Club, Six Ways Stadium.

“The CLA in association with Business Link invite you to attend this not-to-be missed seminar on the opportunities and benefits offered by the introduction of Feed-in-Tariffs (FITs) in April 2010”

If you would like to meet any of the Worcester Renewables team, just call us on 0844-453-5591 and we can arrange a complimentary ticket for you to attend this event.

The Seminar is going to cover the most pressing questions for any Farmer or Landowner considering making this investment, including:

  1. Technical Introduction, Basic Principles
  2. Options for the Landowner—Basics of Feed-in-Tariffs; suitable land/buildings;
  3. A Developers Perspective
  4. Project Viability—Costings; income; payback period; viability;
  5. Taxation—implications on income and corporation tax, capital gains tax and inheritance tax.
  6. Legal Issues—Lease agreements; Heads of Terms; protecting your interests.

    As well as an opportunity to have your specific questions answered.

    Just give us a call on 0844-453-5591 to find out more details on timing etc. and we can arrange for your complimentary ticket – if your are already going – just look out for us there and we will be pleased to answer any questions that you have.