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Feed-in tariff increases by RPI from 1 April 2013

Posted by Cathy Debenham on 26 March 2013 at 9:08 am

Most existing recipients of the feed-in tariff and the renewable heat incentive will receive an  increase in their tariff rates in line with the retail price index from 1 April 2013. However, for some recent recipients of the feed-in tariff of solar PV the first RPI increase will not happen until 1 April 2014.

Below is the Department of Energy and Climate Change's explanation of who gets what when (warning: it's a bit complicated!).

Retail Price Index link

RPI change is applied every April, it is the percentage increase or decrease in the Retail Price Index over the 12 month period ending on 31st December immediately before the start of the relevant FIT Year

Tariffs are affected by RPI in different ways (see below):

PV generation tariffs

In May 2012 we announced the new tariffs for PV and the degression policy which started on 1 Aug 2012. Current tariffs for all PV bands are in the Ofgem tariff tables page.

The RPI change is applied based on when an installation becomes eligible:

  • Installations between 1 November 2012 and 31 March 2013 will not get an RPI increase in 2013. These sites will receive the first RPI change on 1 April 2014.

Thereafter;

  • installations with an eligibility date between 1 April and 31 December receive RPI change from 1 April of the next FITs year
  • installations with eligibility date between 1 January and 31 March receive RPI change from 1 April in the following FITs year.

The reason for this approach is that investment decisions are made based on tariffs at the time. The RPI link is designed to reflect the impact of annual inflation on this decision and it is therefore consistent to apply the RPI change during the relevant calendar year. This is explained on page 22 of the Phase 2a Government Response.

Legislation reference is paragraph 9(b) and paragraph 29 (b) of Annex 4 to the Feed-In Tariffs: Modifications To The Standard Conditions Of Electricity Supply Licences (No. 4 Of 2012).

Export Tariff

This is based on the expected value of electricity “spilled” to the network:

The tariff is increased in April every year with RPI (based on process explained above). Ofgem publish the tariff in March each year – and it is available here. Generators receive the export tariff on their eligibility date (which is then changed each April by the RPI percentage).

So far there are two base levels of export tariff:

  • 3p – start of scheme nominal value, actual rate is currently 3.2p/kWh, and it will increase to 3.3 p/kWh from April 2013
  • 4.5 p/kWh - Post 1 Aug 2012 (for solar PV) and post 1 Dec 2012 (for non-PV) nominal value; this will increase to 4.64 p/kWh from April 2013

Legislation reference is paragraph 10 and 30 of Annex 4 to the Feed-In Tariffs: Modifications To The Standard Conditions Of Electricity Supply Licences (No. 4 Of 2012).

Related information:
Feed-in tariff information page

Photo Credit: joncallas via Compfight cc     By

If you have a question about anything in the above blog, please ask it in the comments section below.

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Comments

10 comments - read them below or add one

NedThorburn

NedThorburnComment left on: 30 September 2013 at 1:39 pm

Cathy,

How did you find "The full table of all solar PV feed-in tariff rates from 1 April 2013?"

I have looked on the Ofgem site and can't find anyway to navigate to it.

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Cathy Debenham

Cathy DebenhamComment left on: 30 September 2013 at 1:21 pm

Hi Ned

Ofgem has changed its website since I wrote the blog. Here's the direct link to the pdf: https://www.ofgem.gov.uk/ofgem-publications/58941/fit-tariff-table-1-april-2013-pv-only.pdf

To navigate there yourself, click the link in the blog, and scroll down to the link titled: Feed-in tariff Table  1April 1013 PV Only. 

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Cathy Debenham

Cathy DebenhamComment left on: 29 April 2013 at 8:16 am

Hi @jkpaul

You should get 46.81p for generation plus 3.3p for export. Your FITs supplier should have asked for a reading at the end of March, and will split your next payment accordingly. Hope that helps.

Cathy

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jkpaul

jkpaulComment left on: 28 April 2013 at 8:41 am

Thanks for this Cathy, though I have to say I'm struggling!

Our 3.6kWp installation was in Nov 2011 and I've been calculating the (FiT + 50% export) this year as 47p (I think that's 44p + 3p approx.).

I'm trying to confirm what our payments will go up to - I think it is 46.81p for FiT and 3.3p for the 50% which we export.

Is that correct?  Sorry to ask but when I look at the ofgem document I don't seem to understand it!

Thanks, Paul

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john a

john aComment left on: 2 April 2013 at 10:52 am

We have solar panels installed ad I cannot seem to find anyway the actual feed in tariff that will apply as from 1 April 2013. I currently am paid 21p and 3.2p for export (this will rise to 3.3p I think. Can you say how much the 21p will rise to please??

 

Thanks

 

John A

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Cathy Debenham

Cathy DebenhamComment left on: 2 April 2013 at 10:52 am

Hi John. The rate will increase to 21.65p. The full table of all solar PV feed-in tariff rates from 1 April 2013 is here (it's a pdf document).

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JIngle

JIngleComment left on: 29 March 2013 at 10:02 am

Very complicated ! 

 

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Cathy Debenham

Cathy DebenhamComment left on: 28 March 2013 at 4:23 pm

Clive, you will get the 3.1% increase this April. It's only those who installed since 1 November 2012 who are going to have to wait a year.

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Clive.Murrell

Clive.MurrellComment left on: 28 March 2013 at 4:12 pm

Hi Cathy,

I don't understand the latest Tariff anouncement. My PV installation was registered in June 2010. Up to now the rate has increased with inflation every April. Will my rate go up by the 3.1% this April or are the government backsliding on the original commitmemt and changing the rules?

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Sims Solar Ltd

Sims Solar LtdComment left on: 26 March 2013 at 10:42 pm

Hi Cathy, indeed complicated, I thought it was installs from May to October (inc) that will get their FiT rate increased in the following April; and installs November to April (inc) then get their FiT rate increased a whole year or more later.

I think this then brings RPI increases in line with the quarterly FiT review timings. Overall very complicated.

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