Feed-in tariff programs originating initally in Germany have been remarkably successful in getting photovoltaic (PV) power generation deployed worldwide. But the runaway success of the programs and the dropping price of PV installation is motivating governments to revisit the original tariffs, for example, in the Czech Republic. Germany has also recently revised its feed-in tariffs.
The UK Energy and Climate Change (DECC) Minister has proposed a new feed-in tariff of 21p per kWh for PV projects up to 4kW – down from the current 43.3p per kWh. Reduced rates have also been proposed for projects between 4kW and 250kW. The change has been motivated by the success of the feed-in tariff program - according to DECC over 16,000 new solar PV installations in September alone and over 100,000 separate installations for a total of over 400MW of capacity, and the dramatic reduction in the cost of PV panels and installation. DECC says that the cost of an average domestic PV installation has fallen by at least 30% since the start of the scheme – from around £13,000 in April 2010 to £9,000 now. DECC says new tariffs are in line with new rates in Germany taking effect in 2012.
A new energy efficiency requirement has been proposed that would mean from a property would have to reach a certain level of energy efficiency to receive the new tariff rates including an Energy Performance Certificate level of C.