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 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 Introduction The UK Government is proposing to reduce Feed-in Tariffs (FITs) for new solar photovoltaic (PV) installations as part of their comprehensiv e 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 Govern ment'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 proposal s which affect household ers 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 install ations with an eligibil ity date on or after 8 December 2011. See definition of eligibi lity date below. This tariff rate is designed to provide house holders 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

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Page 1: Energy Saving Trust FIT Review Fact Sheet

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http://www.decc.gov.uk/
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http://www.energysavingtrust.org.uk/renewableselector/start
http://www.energysavingtrust.org.uk/Generate-your-own-energy/Solar-PV-electricity-panels
http://www.energysavingtrust.org.uk/solarenergycalculator
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http://www.ofgem.gov.uk/SUSTAINABILITY/ENVIRONMENT/FITS/RFITLS/Pages/rfitls.aspx
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http://www.realassurance.org.uk/consumers/how-to-complain
http://www.realassurance.org.uk/consumers/how-to-complain
http://www.realassurance.org.uk/scheme/consumer-code#tag6.2
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