Feed in Tariff (FIT) generation payments for new solar PV installations will fall to 4.04p/kWh for April-June 2017, a further 1.7% reduction in payments compared with January-March 17. This is in line with government plans to gradually reduce the cost of payments for new installations over time. For installations more than 12 months ago, payments are being increased by 2.5% in line with the Retail Price Index (RPI).
Likely generation tariffs for new installations (without deployment cap)
| Installation date | Payment per kWh |
| Apr-Jun 17 | 4.04p |
| July-Sept 17 | 3.97p |
| Oct-Dec 17 | 3.90p |
| Jan-Mar 18 | 3.83p |
The export tariff for all existing and future installs has been increased in line with inflation to 5.03p/kWh (currently 4.91p/kWh). These rates cover domestic solar PV installations under 10kW.
It now seems unlikely that a Deployment Cap will be triggered in the next 12-months. The Deployment Cap was introduced by the government in February 2016 to prevent an excessive volume of domestic solar PV installations in any one quarter of the year. After a huge cut in FIT payments, domestic installation volumes have fallen in the last year from around 15,000 systems per month to around 2,800 per month. This rate is well below the cap level of around 7,000 domestic solar installations per month.
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