Should we scrap Feed in Tariffs?

The Boomer generation of PV FiTs were installed in 2011-2

Every penny of levies raises bills for the hard-up and deters electrification, even legacy feed-in-tariffs, once paid for new small-scale PV installations, but since 2019, not available to new installations. The legacy of this decade-long policy will still be with us however until 2039, as feed-in-tariffs were inflation indexed and guaranteed for 20-25 years.

Right now the FiT levy adds roughly 0.77p to every kilowatt hour of domestic electricity — about £24 a year on a typical 3,100 kWh household (Ben James, electricitybills.uk, FY 2024-25). Much less than Renewable Obligations, and much more skewed toward lowish quality domestic PV.

Falling Capex Costs

PV installation costs have plummeted since 2010, in part due to the stimulus of the feed-in-tariff programme in terms of growing an industry and supply chain, but much of it due to China.