Excerts from Solar Energy

RE FITS
. Do these tariffs mean that small-scale schemes such as domestic installations will still be financially viable if they are under 4kW?
A. According to the UK Government:

• The FITs scheme was designed to deliver a rate of return (ROR) of 5-8% for well located installations.
• The new proposed tariff of 21p is intended to deliver a 4% ROR for well located installations.
• A 4% (real, tax free) return for domestic PV is more appropriate bearing in mind how the investment market has changed since the FITs scheme was introduced.

Q. Will the UK Government be increasing the export tariff to make it more worth my while and to compensate for the reduction in the FIT?
A. The UK Government does not plan to change the export tariff from its current level during this review.
However, the FITs scheme will be subject to periodic reviews which will consider all aspects of the FITs scheme, including tariffs levels, degression rates and methods and make changes if necessary. The second stage of the Comprehensive review, which will be published shortly, will provide more detail on these aspects.