The Effects of the New UK Feed-In Tariff

The new UK Fit in Tariffs come into effect in April. These are much lower than previously and have caused concern about the PV industry generally and the possible job losses in particular.

Two members of British parliament have asked for debates on these new rates, asking for an increase in the tariffs as they say the new rates are too low.

Also the EU has declared the UK’s 5% special treatment of VAT for solar power installations to be a violation of EU rules and are demanding that the UK treat solar power installations as anything other purchase and charge 20% on the total amount.

This also has given parliament a reason for debate, saying that with a drop in Feed In Tariff and an increase from 5% to 20% in Value Added Tax. They say that both these factors together will have a huge impact on the industry with sales dropping and people losing their jobs as a consequence.

The debate will take place soon but until then the amended (lowered) Feed In Tariff will come into force.