News today from Ofgem is that the Feed In Tariff (FIT) payments for new solar PV panel installations in the October-December 2014 period will remain unchanged. A home in an EPC (Energy Performance Certificate) D band or better will receive a generation payment of 14.38p per kWh of electricity generated for systems below 4kWp. The export tariff also remains at 4.77p per kWh.
FIT rates are planned to gradually reduce as the installed solar generating capacity increases. The reduction is calculated according to a degression formula managed by Ofgem. The rules for this formula state that rates can be held for a maximum of 9 months before a 3.5% reduction must be applied. On this basis there will be at least a 3.5% reduction in FIT rates for January -March 2015 installations which would mean a FIT rate of 13.88p per kWh. Any reduction greater than this will depend on the solar capacity installed in the July-September 2014 period. Tariff rates for January – March 2015 installations will be announced on or before 1st November 2014.
The rates last changed in April 2014 when the generation rate fell from 14.90p kWh to 14.38p kWh (a 3.5% reduction).