FITs tariffs to increase 4.8% for 2011-12

2 March 2011

The Feed-in Tariffs (FITs), the Government's financial incentives for renewable electricity projects up to 5MW, are index-linked to the Retail Price Index (RPI) and increase or decrease annually with inflation.

Ofgem has recently published the new FITs tariff rates for the coming financial year and the good news is that from 1 April 2011 both generation and export tariffs will increase by 4.8% in line with the RPI change over 2010.

Both existing and new FITs registered installations will receive the new tariff rates, with anyone who registered their installation in year 1 of the FITs (1 April 2010 to 31 March 2011) receiving the increased tariffs from 1 April 2011, while those who register during year 2 (1 April 2011 to 31 March 2012) will get the increased tariff levels when they start receiving FITs.

The FITs tariff rates are adjusted annually in line with the RPI change over the previous calendar year. These new tariff rates will apply from 1 April 2011 to 31 March 2012, with the next RPI adjustment after this one due on 1 April 2012.

The table of new FITs tariffs is available on the Ofgem website at http://www.ofgem.gov.uk/sustainability/environment/fits/Documents1/Feed-in%20Tariff%20Table%201%20August%202011.pdf