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Revised feed-in tariff for solar photovoltaic in the United Kingdom: A cloudy future ahead?

Author

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  • Muhammad-Sukki, Firdaus
  • Ramirez-Iniguez, Roberto
  • Munir, Abu Bakar
  • Mohd Yasin, Siti Hajar
  • Abu-Bakar, Siti Hawa
  • McMeekin, Scott G.
  • Stewart, Brian G.

Abstract

The United Kingdom (UK) started implementing a national Feed-In Tariff (FiT) mechanism on the 1 April 2010, which included specific payment tariffs for solar photovoltaic (PV) installations. However, a revised FiT rate has been put in place starting from 1 April 2012, applicable to any installations with an eligibility date of on or after 3 March 2012. This paper presents, first, an overview of solar PV installation in the UK. This followed by a general concept of the FiT in the UK before analyzing the financial impact of the new FiT rate on the consumers. Similar financial analysis is conducted with selected countries in Europe. The financial analysis investigates the total profit, the average rate of return and the payback period. It is found that the new FiT rate generates very low profit, minimum rate of return and a longer payback period, suggesting a downward trend of solar PV uptake in the future.

Suggested Citation

  • Muhammad-Sukki, Firdaus & Ramirez-Iniguez, Roberto & Munir, Abu Bakar & Mohd Yasin, Siti Hajar & Abu-Bakar, Siti Hawa & McMeekin, Scott G. & Stewart, Brian G., 2013. "Revised feed-in tariff for solar photovoltaic in the United Kingdom: A cloudy future ahead?," Energy Policy, Elsevier, vol. 52(C), pages 832-838.
    • Handle: RePEc:eee:enepol:v:52:y:2013:i:c:p:832-838
    DOI: 10.1016/j.enpol.2012.09.062
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    References listed on IDEAS

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    1. Keirstead, James, 2007. "Behavioural responses to photovoltaic systems in the UK domestic sector," Energy Policy, Elsevier, vol. 35(8), pages 4128-4141, August.
    2. Celik, Ali Naci & Muneer, Tariq & Clarke, Peter, 2009. "A review of installed solar photovoltaic and thermal collector capacities in relation to solar potential for the EU-15," Renewable Energy, Elsevier, vol. 34(3), pages 849-856.
    3. Hammond, Geoffrey P. & Harajli, Hassan A. & Jones, Craig I. & Winnett, Adrian B., 2012. "Whole systems appraisal of a UK Building Integrated Photovoltaic (BIPV) system: Energy, environmental, and economic evaluations," Energy Policy, Elsevier, vol. 40(C), pages 219-230.
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