Feed in Tariff Degression

Buy Solar Panels now and you will benefit from the current Feed-in Tariff rate, which presently delivers up to a 15% return on investment. Because technology is getting cheaper and installations are becoming increasingly popular, the government will enforce a cut to the Solar Feed-in Tariff starting rate from April 2012.

Those with a Solar PV system installed before then will remain on the current rate, which only goes up with inflation. These customers can therefore generate up to £5,000 more than households who buy after April 2012. The table below shows how the Feed-in Tariff changes over the first 5 years:

Scale Tariff Level for new installations (p/kWh)
up to
up to
up to
up to
up to
Up to 4 kWp (new property) 36.1 36.1 33.0 30.2 27.6
Up to 4 kWp (existing property) 41.3 43.3 37.8 34.6 31.6
Over 4 kWp up to 10 kWp 36.1 36.1 33.0 30.2 27.6

N.B. These starting rates go up with inflation.

After the Solar Feed in Tariff reduction, buyers can expect to receive around a 10% return on their investment, which is the return that the Feed-in Tariffs were originally designed for.

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