Feed-In Tariff Unveiled In U.K.


The U.K.'s Department of Energy and Climate Change (DECC) plans to roll out a feed-in tariff (FIT) for solar energy projects and other forms of renewable energy. The FIT also includes what the DECC says is the world's first incentive for renewable energy heating technologies.

PV feed-in tariffs will begin April 1, and the renewable heat incentive will be implemented on April 1, 2011.

Tariff levels vary according to technology and program year. A PV retrofit project under 4 kW, for instance, will receive 41.3 pence (p)/kWh from April 1, 2010 to March 31, 2011. A PV system between 100 kW and 5 MW, in contrast, will receive 29.3 p/kWh during the same time period. All PV FITs carry a 25-year lifetime. The full table describing FIT levels and timetables is available here.

The FIT for solar thermal projects providing heat varies from 17 p/kWh for installations between 20 kW and 100 kW to 18 p/kWh for installations up to 20 kW – both over a 20-year lifetime.

According to the DECC, a typical 2.5 kW well-sited solar PV installation could offer a homeowner a reward of up to 900 British pounds and save him or her 140 British pounds per year on his or her electricity bill.

SOURCE: U.K. Department of Energy and Climate Change

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