TY - JOUR
T1 - Revised feed-in tariff for solar photovoltaic in the United Kingdom
T2 - a cloudy future ahead?
AU - Muhammad-Sukki, Firdaus
AU - Ramirez-Iniguez, Roberto
AU - Munir, Abu Bakar
AU - Mohd Yasin, Siti Hajar
AU - Abu-Bakar, Siti Hawa
AU - McMeekin, Scott G.
AU - Stewart, Brian G.
PY - 2013/1/31
Y1 - 2013/1/31
N2 - 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.
AB - 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.
KW - feed-in tariff
KW - financial analysis
KW - solar photovoltaic
UR - http://www.scopus.com/inward/record.url?scp=84870722589&partnerID=8YFLogxK
U2 - 10.1016/j.enpol.2012.09.062
DO - 10.1016/j.enpol.2012.09.062
M3 - Article
AN - SCOPUS:84870722589
SN - 0301-4215
VL - 52
SP - 832
EP - 838
JO - Energy Policy
JF - Energy Policy
ER -
