New solar scheme to power up
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nnJust six weeks before the solar panel feed-in tariff payment scheme closes, the UK Government has unveiled plans for a replacement.
It means householders with solar panels won’t find themselves providing electricity to the National Grid for free.
Under the new scheme, solar-panel owners will only be paid for the power they actually export.
That has left experts warning that could make solar panels less attractive than when the first feed-in tariff scheme was launched in 2010.
That current scheme closes to new applicants at the end of March.
In its place the Government proposes the Smart Export Guarantee.
The new tariff system was cautiously welcomed by the industry.
Chris Hewett, CEO of the Solar Trade Association, which represents the industry, said: “We are very pleased that the Government is unequivocal.
“Small generators will be compensated for the power they contribute to the system, but the issue remains providing remuneration at a fair market rate.”
The feed-in tariff (or FIT) currently pays households that generate renewable electricity from technologies such as solar PV panels, wind turbines or generating energy from waste.
The overwhelmingly popular option is rooftop solar panels, which make up 99% of installations receiving FIT payments. The new scheme would let suppliers set their own prices for buying electricity from any householders who generate it, and determine the length of contracts.
The FIT scheme’s rates were set by Ofgem, revised every three months and guaranteed for 20 years.