An initial analysis of options for a UK feed-in tariff for photovoltaic energy, from an array owner's viewpoint

Abstract

The UK government has announced the introduction from April 2010 of a feed-in tariff (FIT) for renewable energy, and initiated a consultation on its design. This paper compares three possible variants of a UK FIT for rooftop photovoltaic(PV) arrays, on the basis of calculated income and array cost payback time, and for three locations (north, central and southern England) and various levels of household electricity consumption. This modelling is based on an FIT rate equivalent to Germany's. It concludes that an FIT which paid only for PV electricity surplus to on-site needs, and exported to the grid, would mean a simple payback time too long to make array purchase appealing. Preferable would be either export to the grid of all PV electricity for FIT payment; or a lower FIT rate for electricity used on-site, plus full FIT for any surplus exported. The latter would involve significantly lower costs in feed-in tariff payments. Finally, the effect of the UK government's illustrative FIT rate for consultation is examined for the same locations and annual consumption levels. © IOP Publishing Ltd.