The announced feed-in tariff in the UK could stimulate demand for solar in the country and establish a significant new market for PV suppliers, according to market research firm, IMS Research. The recent falls in PV component prices coupled with the new FiT’s reasonable payout levels could see a return on investment within 12 years and could now lead to a significant investment in this sector. IMS Research projects that 250MW of new PV capacity could be installed in 2011.
Ash Sharma, Renewable Energy Research Director, commented, “The announcement presents an even higher feed-in rate than was originally proposed. This is likely to generate a significant PV market in the UK, though it will take some time to get traction due to the need for all installers to be registered under the scheme. The UK has similar irradiation levels as Germany and without a FIT just 5 MW of new PV power was installed in the UK in 2009. However, the introduction of this FIT could lead to 250 MW of new PV capacity being installed in 2011.”
PV projects up to 5MW would now receive up to 41.3 pence per kWh (€0.47), which would be a key target market for investors, according to IMS Research.