Renewable Energy Magazine | UK Feed-in Tariff costs set to rise to an all-time high

Cornwall Insight research showing that UK Feed-in Tariff (FiT) costs for the upcoming quarterly levelisation could reach an all-time high, covering the period April – June 2020, was featured on Renewable Energy Magazine.

The combination of extremes in sunshine hours and low energy demand resulting from the COVID-19 lockdown has created the perfect conditions to drive up FiT costs this quarter. Electricity suppliers are due to be invoiced for FiT levelisation on 28th July, with payments due on 11th August 2020. Costs are expected to be well above last year’s level of £8.0/MWh.

Tim Dixon explained that as solar PV dominates the capacity installed under the scheme and that scheme costs are levied on units of electricity demand during the quarter, these all point towards the prospect of higher costs than perhaps suppliers factored into their tariffs

Cornwall Insight’s Feed-in Tariff forecast scenarios for the upcoming levelisation suggests the actual outturn costs to the supplier could be well over 5 percent of the overall costs for typical household electricity bills. 

Tim Dixon, Wholesale Team Lead

Renewable Energy Magazine