The UK to Finally Get Its Feed-in Tariff
The UK's Department of Energy and Climate Change unveiled this week a much-awaited plan for feed-in tariffs, including up to 41.3 pence per kWh for PV systems. The incentives could give the country the kick-start it needs to get its nascent PV market off the ground.
Aaron Hand, Editor-in-Chief -- PV Society, 2/2/2010
As the solar industry looks for expanding markets elsewhere in the wake of Germany's recently announced lowering of feed-in tariffs (FITs), the UK's government has finally stepped forward this week with finalized FIT rates. The UK Department of Energy and Climate Change (DECC) on Monday unveiled its much-awaited plan for renewable energy incentives.
Scheduled for an April 1 introduction, the plan includes PV FITs that could earn a typical 2.5 kW installation £900 ($1417.80), in addition to an energy bill reduced by £140 ($220.56), DECC noted. This could give residents the incentives needed to kick-start the UK's reduction solar industry.
"The guarantee of getting an income on top of saving on energy bills will be an incentive to householders and communities wanting to make the move to low-carbon living," said Energy and Climate Change Secretary Ed Miliband. "The feed-in tariff will change the way householders and communities think about their future energy needs, making the payback for investment far shorter than in the past."
The new FITs will pay up to 41.3 pence (65 cents) per kWh for systems up to 4 kW, 31.4 pence (49 cents) per kWh for systems up to 100 kW, and 29.3 pence (46 cents) per kWh for larger and standalone systems.
The incentives could well be what the country needs to get its PV market off the ground. PV installations in the UK have so far been extremely low, according to IMS Research (Wellingborough, UK), with the government instead supporting nuclear and wind power to meet its renewable energy commitment. But IMS expects the FITs to quickly stimulate demand for PV and establish a significant new market for PV suppliers.
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