United Kingdom: FIT Degression to Support Stable, Yet Iterative Policy Evolution and Solar Market Growth
To support a stable, yet flexible, FIT policy environment, the United Kingdom designed a solar FIT degression approach with pre-planned tariff decreases of 3.5% occurring quarterly. However, during times of low PV deployment, price decreases can be skipped for up to two consecutive quarters. Conversely, when deployment is higher than expected, the FIT degression can be increased up to a set percentage. In addition, the UK government reviews tariffs annually to ensure they align with overall policy goals as market dynamics evolve. For more information, see www.fitariffs.co.uk.