The Sun is setting on the feed in tariff

The Feed-in Tariff (FiT), the government subsidy which supports the small-scale generation of renewable electricity, is not expected to be renewed from spring next year, although it will continue for those already on the scheme. Under this tariff, home-owners or businesses with renewable electricity generation such as solar panels on their roofs or a hydroelectric generator in their stream are paid for every unit of electricity that they generate for the first 20 years of operation. The tariff also pays generators for exporting electricity which they do not use on site to the grid. The Feed-in Tariff has run since 2010 and has supported the installation of thousands of renewable electricity generation systems in houses and businesses across the UK. However, the scheme is up for renewal in spring 2019 and the government has stated that it will not be allocating more funds to support electrical generation in the immediate future. So the Feed-in Tariff will close to new entrants. The Feed-in Tariff generation rate currently pays generators around 4p/kWh. If homeowners or businesses want to take advantage of the government subsidy, they will have to install their system before spring 2019. Admittedly, four pence is not an immense sum, but it is much better than nothing! Over thousands of kWh over 20 years, the FiT at 4p still amounts to a substantial payment towards the cost of the installation.

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