Green Business Watch

Research Shows Government's Feed-in-Tariff Scheme Drives Domestic Solar Power


London, UK -- (SBWIRE) -- 06/04/2013 -- Research carried out by, a website which connects consumers to green companies, has identified some interesting insights into the Feed-in-Tariff (FIT) scheme and its adoption patterns. It has also highlighted the impact of tariff changes made by the Government in the 3 years the scheme has been running. The research shows that UK households continue to readily adopt renewable energy generation. There have been over 366,000 domestic installations, making up over 95% of total installations under FIT. The Feed-in-Tariff scheme was launched in April 2010 and is designed to support small-scale renewable energy installations in homes and businesses throughout the UK. The research covers the period from the scheme's launch to the 31st March 2013.

Solar Power Dominates
The majority of installations since the launch of FIT have been domestic and solar PV appears to be the renewable energy of choice. Since the scheme's launch, solar PV has accounted for over 98% of installations. Households saw the potential of helping the environment as well as the opportunity to save money on their energy bills, which are increasing at a tremendous rate.

The same price increase problem is also being faced by businesses. Commercial and industrial installations continue to be adopted at a slower but steady rate. They also tend to be larger.

Tariff Changes
The research shows a clear pattern that revolves around tariff changes. You might expect a spike in uptake at the start of a scheme such as this one, with demand levelling off as you move from early adoption to regular running. Instead, clear peaks and troughs in adoption can be identified.

Tariffs have decreased a number of times since the scheme launched which has led to spikes in installation numbers before the tariff adjustment with noticeable dips just after. That in itself isn’t shocking, however tariff reductions are continuing in 2013 and beyond which begs the question will potential domestic, commercial and industrial adopters continue to see the value? Will the Government and renewable energy installers be able to convince customers that the scheme is still of benefit after a drop in tariffs from 43.3p/kWh to 14.90 p/kWh ?

Alastair Kay, Editor of commented, "The challenge for the solar industry is to deal with this question. Is solar PV a good investment with a FIT rate of 15.44 p/kWh or 14.90 p/kWh? The installed cost of solar PV has gone down so much that many would say yes but is that message getting through to the customer?"

To see the full findings from visit FIT Data Analysis April 2010 to March 2013.

How the Feed-in Tariff works
The Feed-in Tariff was introduced by the UK Government with the aim of encouraging domestic users and businesses to switch to generating their own renewable energy from sources such as wind and solar power. Put simply, the energy generated by the renewable installation can be used by the occupants of the property to power their home or business. This then reduces their need to use non-renewable energy and in turn lowers energy bills. Participants in the scheme are paid a tariff for every unit of energy that they generate, even the energy they use themselves, and an extra tariff for energy that is “exported” back to the grid. When savings and tariff payments are taken into account, there is a real opportunity to make money from the scheme.

About is a website for people who are interested in living green. As well as regular blog posts and news of interest to both individuals and organisations that want to do their bit for the environment they also manage a successful online marketplace. This allows people to find suppliers that share their desire to help the environment and installers of renewable energy systems.

For more information contact, Editor, Alastair Kay
Alastair Kay, Editor
020 3290 9427

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