3.5% FIT degression announced for small-scale UK solar

Changes to the Feed-in Tariff (FiT) mean that small-scale solar PV installations will be subjected to a 3.5% lower rate, as of 1st January 2015.

The U.K.'s Office of Gas and Electricity Markets (Ofgem) confirmed that the lower tariff for all installations in the <50 kW band will be triggered in the new year after slow solar deployment in this range in 2014 failed to spark an automatic degression.

The new lower rate stands at £0.1171/kWh for the >10-50 kW band (down from £0.1213/kWh), £0.1257/kWh for the >4-10 kW band and £0.1388/kWh for the 0-4 kW band.

Changes to the U.K.'s subsidy scheme for large-scale solar announced earlier this year were intended to shift support towards the smaller-scale domestic sector, but despite encouraging signs of growth in recent weeks, ground-mount PV capacity is poised to overtake installed rooftop capacity before the end of 2014.

Deployment between the two sectors will likely end the year close to 50:50, with approximately 2 GW in each. However, the first quarter of 2015 is likely to see ground mount activity pull ahead, according to NPD Solarbuzz.

The untapped potential of the commercial-scale sector – thus far untouched by FIT degressions and still eligible for the attractive Renewable Obligations Certificate (ROC)** could adopt a leading role in the U.K. solar landscape in 2015.

SBS have a wide range of solar PV technologies that are eligible for FiT payments, as well as help lower energy bills by reducing dependence on imported electricity. If you would like more information, call our helpline on 0800 688 8388 or email helpline@tpsbs.co.uk.

This article has been adapted from an article published in PV Magazine.