The potential for UK feed-in tariff changes

Facebook
Twitter
LinkedIn
Reddit
Email

Possible changes to the recently introduced feed-in tariff (FiT) in the UK are being mooted, according to media reports. The Solar Power Portal, sister-site to PV-Tech and dedicated to the UK PV market, has heard rumors about the possibility that cuts may be made to the tariff prior to the 2012 official review and has produced this update. A Financial Times article published on Friday 24th September alludes to the fact that at this weeks Liberal Democrat conference apparent back room talks have taken place. 

The fear is that the coalition government could cut the incentives for solar installations as adoption rates have soared to over 10,000 since the FiT was introduced in April, 2010, according to Ofgem figures.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

According to the FT report, cuts could be made before the proposed review, initially put in place when the FiT was launched.

The Renewable Energy Association’s Solar Power Group has sought clarification from the government and the official response from the Department of Energy and Climate Change (DECC), the body responsible for the tariff, is that currently DECC is not considering any changes but that under the spending review due out on the 20th of October it may be considered by treasury.

It should be noted that the UK FiT is not a levy on taxpayers, rather via a small increase over time to electricity prices that consumers pay. 

Language used in the FT report suggests that the FiT is seen as “generous,” though compared to other countries FiT systems, is clearly in the cluster of typical tariffs adopted, especially in Europe.

The timing of the review and lack of clarity over the motives behind the review have already sparked consternation from the fledgling solar industry in the country.

The government’s position on the matter will not be known until the results of the comprehensive spending review is announced on the 20th of October. Alan Whitehead, MP and chair of PRASEG, the parliamentary body that looks at renewables in the UK and David Wagstaff, Head of Distributed Energy at DECC, will both be speaking at an upcoming industry conference, Solar Power UK, on the 18-19 October in London.

 

Read Next

October 7, 2026
Independent power producer (IPP) Zelestra has closed a US$350 million credit facility for the 203 MW Reclamation Solar project in Indiana.
October 7, 2026
As solar PV continues to grow globally, the technology is set to become the largest contributor to the world’s electricity mix from 2031, according to a report from technical and safety expert DNV.
October 7, 2026
Bondada Engineering secures a US$119.3 million solar EPC order, while its subsidiary Onix IPP secures US$94.1 million in SBI financing.
October 7, 2026
US clean energy developer Clearway Energy has closed financing and started construction on a 650MW solar project in Missouri.
October 7, 2026
The US solar sector will discuss a policy landscape includes “a lot of good news” at next week's PV CellTech USA conference.
Premium
October 7, 2026
The merger of SEIA and CCSA could be a 'great move' for both trade associations involved, according to industry veteran Yann Brandt.

Upcoming Events

Solar Media Events
October 13, 2026
San Francisco Bay Area, USA
Solar Media Events, Upcoming Webinars
October 21, 2026
2pm AEDT
Solar Media Events
November 3, 2026
Málaga, Spain
Solar Media Events
November 24, 2026
Warsaw, Poland