Reducing support for renewable electricity-Feb 2014


With effect from 1st April this year Solar tariffs for new smaller systems of 50kw or under will reduce, while those connected before the 1st April will be guaranteed the existing rate and RPI Indexation.

New systems under 4kwp will receive 14.38p/kWh generated.

Larger domestic systems (4-10 kWp) will get 13.03p/kWh. 

Farm and small industrial roof scale solar of 10 - 50 kwp will get 12.13 p/kWh,  while slightly larger ones (50 - 150kwp) will remain at 10.71p/kWh.

The rate for larger industrial roof scale (150 -250kWp) falls to 10.25p/kWh,

Ground mounted systems up to 5MW remain at 6.61p/kWh.

Oliver Harwood, who has been helping clients install solar across the South East commented “The falling price of installations means that in most cases solar can still deliver yields of 8% or more, and significantly more where the power generated is saving the purchase of daytime and summer electricity- typically where cooling fans or air conditioning demands can be met”.

“Wind tariffs have been reduced by up to 20%, as anticipated, but can still provide attractive returns in the right circumstances – where planning consent is feasible, wind speed is adequate, and grid connections are available. Tariffs will be 15 - 100kW 17.32p/kWh, 100 - 500kW 14.43p/kWh, 500kW - 1.5MW 7.83p/kWh, 1.5MW or greater 3.32p/kWh”, he added.

He went on to say “I very much regret that the tariff for small-scale anaerobic digestion (AD) plants of 250kWe or less has been reduced from 15.57p/kWh to 12.13p/kWh despite the wholesale rejection of this cut by industry and commentators alike. Happily the pressure applied has led Government to agree to review the proposed cut, and there is reason to believe it may not be as draconian as this.

Plants greater than 250kW but less than 500kW  are also to be cut from 14.40p/kWh to 11.22p/kWh, whereas larger plants (over 500kW) are to receive 9.24p/kWh - a small decrease from 9.49p/kWh. These proposals are not justified by evidence of falling costs, unlike in the solar field“.

“Happily RPI uprating means the export rate will be 4.77p across all technologies, but better returns may be available where investors have a sufficiently large enough output to justify negotiating a formal power purchase agreement”.

For more information or to discuss your energy proposals please contact or phone 07775 334843

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