Death of the Feed-in-Tariff

The Feed-in-Tariff was first introduced in the UK in April 2010 to act as a financial incentive for homes and businesses to take up renewable energy. Succesful applicants receive a payment for the clean energy they produce receiving a guaranteed fixed price, indexed for inflation for 20 years.

The Feed-in-Tariff (FIT) has been extremely successful at encouraging the take up of renewable energy. Most installations in the UK could not have happened without it.

Unfortunately, the FIT subsidy is set to end in April 2019. As set out by the Government in the 2017 Autumn budget, “there will be no new subsidies for renewables until 2025”.

So what does this mean for the future of renewables in the UK? Thankfully, a dramatic fall in costs since 2010 means that access to solar power is much more affordable than it was. As the costs to store energy using battery power technology decline the time is approaching where there will be no need for subsidies after all, though making this happen by April 2019 will be a challenge.

Battery Storage

As the Feed-In-Tarff subsidy dimishes over the next year, solar power installers will be looking to use battery storage as a way of making new projects work financially. Being able to charge a battery with solar power means the electricity does not need to be consumed at the point of generation, instead it can be used when it’s needed, day or night. This could prove to be just the catalyst needed for wide-scale clean energy deployment.

Combining battery storage with renewable energy will unlock the door to using clean energy sources around the clock putting the final nail in the coffin for fossil fuels in our energy supply. Furthermore, in the same way that solar and wind power costs have plummeted, we can expect the price of battery storage to fall as production techniques improve and economies of scale take hold.

Battery Storage at Dyke Golf club

With falling costs, home storage is seen as increasingly attractive in the UK, particularly to early adopters, being the 850,000 homes with solar panels. The Tesla Powerwall, perhaps the best known energy storage battery, has recently become available in the UK, soon be challenged by a British made Nissan battery. Other British manufacturers are Powervault and Moixa.  There have even been suggestions that electric vehicle batteries can be connected to the grid to sell extra power at peak times, adding another incentive to becoming an EV owner.

The energy market is certainly set for some rapid and profound changes in the years to come. In the last part of our Energy Trends blog series, we’ll look at the emerging popularity of heat pumps and how smart meter will change the way we buy power.

Guest Blog, by Jaden Yang of University of California, Berkeley

solar battery

Distributed generation such as rooftop solar panels creates an economic democracy where every person can generate electricity from their own solar photovoltaic cells. Another benefit is lower transmission losses since the solar energy comes directly from their rooftop. However, one of the biggest challenges of renewable energy is energy intermittency. Solar panels on a rooftop can only generate electricity during daylight hours, and if a solar panel generates more electricity than you can use in the moment or does not generate enough, electricity must be exported or drawn from the grid to compensate. For this reason, solar panels do not always generate electricity when the domestic demand is greatest.


intermittant energy


Renewable energy has always faced challenges of consistency of supply and system integration. Some flexibility options to complement renewable energy are flexible peak power plants, grid integration, demand side management and battery storage. In California, a Net Metering policy that credits solar energy system owners for the electricity they add to the grid has given considerable benefits to solar panel owners. Unlike California, the UK has not implemented this policy widely, making battery storage systems a more attractive proposal to encourage the uptake of solar. Battery storage is not a new technology.  Up until now, due to its expense, it hasn’t been widely used in the UK. It would allow solar PV owners to generate, convert and save excess electricity for use at a later time, enabling users to make maximum use of the electricity they have generated themselves, as well as providing a solution to intermittency and production/demand mismatch.

In order to make battery storage affordable and feasible, government subsidies on green technologies can enhance both business and environmental performance. First, clean technology businesses can increase their research budget with government subsidies to improve and reduce the cost of battery storage. Secondly, if battery storage becomes popular, less people use electricity from the grid. Thus, once solar panels and battery storage systems become prevalent in a community, people have less dependence on traditional fossil fuel power generation, which will have the effect of reducing greenhouse gas emissions. Therefore, we believe there is enormous potential for battery storage to enhance domestic renewable energy production, which itself encourages the development of better batteries in a virtuous circle.