Revised feed-in tariff for solar photovoltaic in the United Kingdom: a cloudy future ahead?

Firdaus Muhammad-Sukki, Roberto Ramirez-Iniguez, Abu Bakar Munir, Siti Hajar Mohd Yasin, Siti Hawa Abu-Bakar, Scott G. McMeekin, Brian G. Stewart

Research output: Contribution to journalArticle

43 Citations (Scopus)

Abstract

The United Kingdom (UK) started implementing a national Feed-In Tariff (FiT) mechanism on the 1 April 2010, which included specific payment tariffs for solar photovoltaic (PV) installations. However, a revised FiT rate has been put in place starting from 1 April 2012, applicable to any installations with an eligibility date of on or after 3 March 2012. This paper presents, first, an overview of solar PV installation in the UK. This followed by a general concept of the FiT in the UK before analyzing the financial impact of the new FiT rate on the consumers. Similar financial analysis is conducted with selected countries in Europe. The financial analysis investigates the total profit, the average rate of return and the payback period. It is found that the new FiT rate generates very low profit, minimum rate of return and a longer payback period, suggesting a downward trend of solar PV uptake in the future.

LanguageEnglish
Pages832-838
Number of pages7
JournalEnergy Policy
Volume52
DOIs
Publication statusPublished - 31 Jan 2013
Externally publishedYes

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Profitability
tariff
rate
profit
analysis

Keywords

  • feed-in tariff
  • financial analysis
  • solar photovoltaic

Cite this

Muhammad-Sukki, F., Ramirez-Iniguez, R., Munir, A. B., Mohd Yasin, S. H., Abu-Bakar, S. H., McMeekin, S. G., & Stewart, B. G. (2013). Revised feed-in tariff for solar photovoltaic in the United Kingdom: a cloudy future ahead? Energy Policy, 52, 832-838. https://doi.org/10.1016/j.enpol.2012.09.062
Muhammad-Sukki, Firdaus ; Ramirez-Iniguez, Roberto ; Munir, Abu Bakar ; Mohd Yasin, Siti Hajar ; Abu-Bakar, Siti Hawa ; McMeekin, Scott G. ; Stewart, Brian G. / Revised feed-in tariff for solar photovoltaic in the United Kingdom : a cloudy future ahead?. In: Energy Policy. 2013 ; Vol. 52. pp. 832-838.
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Muhammad-Sukki, F, Ramirez-Iniguez, R, Munir, AB, Mohd Yasin, SH, Abu-Bakar, SH, McMeekin, SG & Stewart, BG 2013, 'Revised feed-in tariff for solar photovoltaic in the United Kingdom: a cloudy future ahead?' Energy Policy, vol. 52, pp. 832-838. https://doi.org/10.1016/j.enpol.2012.09.062

Revised feed-in tariff for solar photovoltaic in the United Kingdom : a cloudy future ahead? / Muhammad-Sukki, Firdaus; Ramirez-Iniguez, Roberto; Munir, Abu Bakar; Mohd Yasin, Siti Hajar; Abu-Bakar, Siti Hawa; McMeekin, Scott G.; Stewart, Brian G.

In: Energy Policy, Vol. 52, 31.01.2013, p. 832-838.

Research output: Contribution to journalArticle

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Muhammad-Sukki F, Ramirez-Iniguez R, Munir AB, Mohd Yasin SH, Abu-Bakar SH, McMeekin SG et al. Revised feed-in tariff for solar photovoltaic in the United Kingdom: a cloudy future ahead? Energy Policy. 2013 Jan 31;52:832-838. https://doi.org/10.1016/j.enpol.2012.09.062