Solar installations continue to stall post August FiT cuts

The latest solar installation figures released by the Department of Energy and Climate Change (DECC) show that the UK solar industry is continuing to suffer from a serious slump in installation rates following the introduction of fresh FiT cuts in August.

Total 0-50kWp installations between August 5-19 stand at an extremely disappointing 1,155 – a full 88 percent lower than three weeks ago.

Of the 1,155 installations, 99 percent were small domestic systems in the 0-4kW banding. Unfortunately, DECC does not provide any distinction on the type of installations performed. Therefore, it is impossible to know how many of the 1,138 installations were carried out by so-called ‘free solar’ companies.

The last two weeks have seen just a dozen installations completed in the 4-10kWp banding and an incredible five installations in the 50-100kWp banding.  

A noticeable dip in installation rates was always expected from industry, however, the severity of the dip and its prolonged continuation will begin to concern solar installers who are already bracing themselves for another round of FiT cuts due November 1.  

Industry will hope that installation rates will recover as they have done in the past following FiT cuts. It remains to be seen what effect such a regular tri-monthly digression will have on installation rates in the long-term.

The latest installation figures allow industry to form an educated guess about what tariff rates will be introduced in November too. Currently, installations in the 0-10kWp bracket lie in-between 100-200MW – meaning a 3.5 percent cut will be introduced. Installations in the 10-50kWp currently sit just above 50MW, meaning that this tariff band will also experience a 3.5 percent digression come November 1.