The UK government plans to implement massive 87% cuts to the solar PV feed-in tariff (FIT) in January 2016 – far larger than expected by anyone in the solar industry.
The feed-in tariff will drop for all sizes of solar installation. Small scale solar panel installations (such as installing solar pv on home roofs) will drop from 12.47p per kilowatt hour to 1.63p. Large standalone solar installs will change from 4.28p per kWH to just 1.03p per Kwh.
The drop in solar tariff means that anyone thinking of installing solar panels must do so before the January tariff drop or risk losing out.
News of the January feed-in tariff reduction was revealed in the consultation document released by the Department of Energy & Climate Change (DECC) and may even result in the DECC being wound up as a standalone department.In their impact assessment, the DECC accept that the proposed cuts in the solar tariff are likely to lead to a huge drop in solar installations.