Friday, 1 April 2016

Solar Feed in Tariff Payments Changes in Budget 2016

What many commentators missed amongst the small print in the Chancellor's 2016 Budget were changes to the way Feed in Tariff (FiT) payments were to be made in the future.

For many householders their roof has provided an additional income after investing in PV panels. Whilst governments initially encouraged and supported the green agenda for renewable energy, the costs of providing FiT payments have risen substantially.

Unfortunately, many households will see their income from their PV panels fall by 50%.

The bill for FiT payments currently exceeds £100M a year. (Please see comments for further information).
In an attempt to address this problem the Chancellor has announced that from 2017 payments to householders will be based on their house number. 
If your house number is an even number then all energy generated from your PV panels will only be payed on even days of the month and the same will applied to odd numbered properties.

This is going to cause problems for some rural homes which have no numbers. 

One couple who didn't want to be named have 14 PV panels on their 16th century thatched cottage in a quiet Hampshire village. 

They said "It's just one thing after another, first the neighbours complained and then the local conservative trust and now this."

There are 185 odd days in the year and 180 even.
Because of the difference in the number of odd and even days (particularly in leap years) the payment rate per kWh will differ between households by 2.77%. 

Using the latest FiT rates applicable for new installations from January 1st 2016 the new payments will be.

Odd numbered properties - 4.26p per kWh.

Even numbered properties - 4.39p per kWh.

You can see the rates for 2016-2017 using this link.

Whist estate agents have always stressed that location is the most important factor to consider when choosing a property, they are predicting that some homes will become more difficult to sell based on whereabouts in the street it is.

Twitter: (@solaricarus)


  1. Well I know this was an April 1st article the cost of FIT is actually around 1 billion £ a year

    1. I'd be interested in where you came up with the £1 billion figure? I know the article was tongue in cheek, but the £100million figure was based on factual reports.

  2. a) I work for 1 of the big 6 and we alone spend over 100 million on fit.
    b) qtrly payments on published @

  3. I believe an apology is in order.
    Whilst I posted the piece in good faith (if a little humorously) I now accept that my figure of £100 million was totally incorrect. I have asked the couple in their thatched cottage to hang their head in shame as well!
    The accurate figures are contained in the following link.