Solar Power Feed-in Tariff Rates for November 2012 Announced

by Jarrah Harburn on August 28, 2012

November solar power feed-in tariff rates announcedOfgem have announced the solar power installation rates for May, June and July 2012 and consequently the new feed-in tariff rates for November 2012. UK solar industry’s tariff digression system works by analysing the solar panel installation numbers in terms of installed capacity, then either reducing, maintaining or in extreme cases increasing the feed-in tariff’s accordingly. The good news is that a small reduction will take place on the domestic scale, whilst large scale commercial rates stay the same.

There are three categories of solar power installation according to Ofgem. Whilst these bands make no distinction as to on what kind of property the installation has taken place, they do label each category according to whether it be in the ‘Domestic’ size, the ‘Small Commercial’ band or the ‘Large Commercial’ scale. The rates work independently for each and as such it’s best to break each one down.

Domestic Scale

Size: 0-4kWp and 4-10kWp Sized solar power systems

Current Rate: 0-4kWp is 16 pence per kWh; 4-10kWp is 14.5 pence per kWh

Installation Figures: 163.769MWp therefore 3.5% reduction due to installation figures of between 100-200MWp

New Rates:0-4kWp will be 15.44p and 4-10kWp will be 13.99p

Small Commercial

Size: 10-50kWp

Current Rate: 13.5p per kWh

Installation Figures: 57.09MWp therefore 3.5% reduction as threshold of 50MW was exceeded

New Rate: 13.03p

Large Commercial

Sizes: 50kWp – 150kWp; 150kWp – 250kWp; 250kWp to 5MWp

Current Rates: 11.5p;  11p; 7.1p respectively

Installation Figures: 13.94MWp were installed, below the minimal threshold of 50MWp therefore no reduction

New Rates: All maintain the same rates of 11.5p; 11p and 7.1p respectively.


The slight drops in the Domestic and Small Commercial feed-in tariff rates reflect further reductions in the cost of installation. With 4kWp prices now bottoming out at approximately £5,600 inc VAT installed; there are no changes to the real returns people experience from installation solar power on their home or business. The feed-in tariff rates are designed to incentivise people to install solar power on their homes and business primarily to save money. Each time the feed-in tariff rates reduce all that it means is less is earned from the system over it’s lifetime.

The Large Commercial rates are maintaining which is very good news for Solar Selections and our commercial solar power partners. Whilst installation figures were not high, the solar farming and MWp market is becoming a very interesting and fruitful grounds for investors and landowners to capitalise on unused roof and land space, strike up a partnership and both secure considerable incomes from large solar panel systems. It is very complicated to find the right investors, installers and freeholders however; something Solar Selections is finding ourselves doing more frequently. Our experienced commercial arm is managing many dozens of these projects to completion and would be welcome to any further enquiries from interested parties.

Written by Jarrah Harburn

T: 020 7205 2267

© 2012 Solar Selections Ltd

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