Which? supports government stance on feed-in tariffsDECC will limit FIT scheme for large businesses

09 June 2011

Solar panel on roof of house

Energy and climate change minister Greg Barker MP has today announced important changes to the feed-in tariffs (FIT) scheme, which gives money back to households that generate their own energy.

Feed-in tariffs reward those who are generating their own electricity for feeding excess energy back into the grid. Homes which have solar PV or other electricity-generating improvements can not only save on their electricity bills but make money by selling on the extra power

More money for smaller installations

At the moment the government estimates that each household in the UK pays around £8.50 per year to subsidise the scheme. To date over 40,000 installations have registered for this scheme, however, many of them are companies with large solar installations. From August 1 2011, different tariffs will apply depending on the size of the installation, meaning that large installations will receive less money.

By reducing the amount of money provided to large-scale installations, such as big businesses, the Department of Energy and Climate Change hope to be able to allocate more money to smaller installations owned by consumers and small businesses.

Consumers should get the benefits

Which? welcomes these changes, which mean that more money will be available to consumers who want to generate their own electricity. Richard Lloyd, executive director of Which? said:

'We're glad that the government recognises that as consumers pay for the FIT scheme through their energy bills, consumers should get the benefits.

'One large-scale solar installation could take the same amount of money from the FIT scheme as over a thousand households, so we're pleased to see the Government reducing the tariffs for such projects.'

Energy and climate change minister Greg Barker said 'I want to drive an ambitious roll out of new green energy technologies in homes, communities and small businesses and the FIT scheme has a vital part to play in building a more decentralised energy economy.'

Do you agree that the changes to feed-in tariffs will benefit consumers? Join in the debate at Which? Conversation. 

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