The feed-in tariff in the UK: A case study focus on domestic photovoltaic systems

Abstract

This paper explores the photovoltaic (PV) industry in the United Kingdom (UK) as experienced by those who are working with it directly and with consideration of current standards, module efficiencies and future environmental trends. The government's consultation on the comprehensive review for solar PV tariffs, proposes a reduction of the generation tariff for PV installations in the UK of more than 50%. The introduction of the Feed-In Tariffs scheme (FITs) has rapidly increased deployment of PV technologies at small scale since its introduction in April 2010. The central principle of FIT policies is to offer guaranteed prices for fixed periods to enable greater number of investors. A financial analysis was performed on two real-life installations in Cornwall, UK to determine the impact of proposed cuts to the FIT will make to a typical domestic PV system under 4kW. The results show that a healthy Return on Investment (ROI) can still be made but that future installations should focus on off-setting electricity required from the national grid as a long term push for true sustainability rather than subsidised schemes. The profitability of future installations will have to be featured within inservice and end-of-service considerations such as the feed-in tariff, module efficiencies and the implications of costs associated with end-of-life disposal.

Is Renewable Heat Incentive the future?

“…According to the EST, the average gas price is £0.049/kWh and the average electricity price (standard rate) is £0.1439/kWh [61]. Taking into account the effect of inflation rate, it is calculated that the average RPI for the past 10 years in the UK is 3% [46], which affects the RHI rate and the annual maintenance cost. Also, it is assumed that the annual utility cost increases by 8% per year [46].…”

“…Taking into account the effect of inflation rate, it is calculated that the average RPI for the past 10 years in the UK is 3% [46], which affects the RHI rate and the annual maintenance cost. Also, it is assumed that the annual utility cost increases by 8% per year [46]. Because of the changes in the RHI rate, maintenance cost and the utility cost per year, this causes the annual revenue to change accordingly.…”

“…Because of the changes in the RHI rate, maintenance cost and the utility cost per year, this causes the annual revenue to change accordingly. Therefore, an exception is made to the calculation of the payback period -this is determined by the number of years before the system begins to generate any profit [46].…”

Green in the heart or greens in the wallet? The spatial uptake of small-scale renewable technologies

“…6 The upfront cost for a domestic PV system typically lies in the range of £9000 and £13000 (Cherrington et al, 2013;Muhammad-Sukki et al, 2013), and from a private (household) perspective, a return on investment of 9-10% was typical for a domestic PV installation (Cherrington et al, 2013). It is worth noting that there have been significant cost reductions in PV technologies as the market for devices in the UK has expanded (Balcombe et al, 2013), which has had implications both for the level of capital required and the PV tariff levels.…”

A Novel Geographical Information Systems Framework to Characterize Photovoltaic Deployment in the UK: Initial Evidence

“…For example, Cherrington et al [8] and Muhammad-Sukki et al [9] investigated the level of subsidy provided through a government market-pull policy and how it impacted on uptake of PV in the domestic sector. These reports demonstrated the clear influence of government policy in driving UK deployment in the domestic market.…”