Plans to change what households make from solar Feed-in Tariffs 'feels a breach of pro

Scot_39

QrizB said:

_Sam_ said:

Out of curiosity would this affect rent-a-roof companies as while the difference in payment is small for an individual, for the companies it would be more substantial given the large numbers of solar panels they invested in.

It will indeed.

I'm expecting those businesses, plus the larger generators who have FIT-supported industrial systems, to make strong representations in response to this consultation.

The consultation period closes on Friday.

I am also hoping consumer groups and energy / poverty charities also make strong representations.

As they too have been invited to participate.

The_Green_Hornet

As predicted, the FiT inflation increase is being changed from RPI to CPI.

Feed-in Tariffs (FiT) scheme: indexation changes - GOV.UK

Scot_39

So the ludicrous upto 75p/kWh plus remains - c10x average UK wholesale rates in the autumn - allbeit at future indexing at a slightly lower rate.

For a scheme that produces little energy on many high demand - overcast, raining etc - winter days - lije yesterday when the current 21.5GW of solar on ave produced just 1.1% - 0.43GW - ave daily demand

Yet another way renewables increases our energy costs. With FIT adding another 0.7p /kWh to cap prices.

Doc_N

https://forums.moneysavingexpert.com/discussion/comment/81857936#Comment_81857936

A contract is a contract, and this is still a reduction in the payments promised contractually. I know it grieves you, but how would you feel if you had a fixed rate mortgage at 2% but the bank decided it would prefer to charge you 3% - same principle. Once contracts go out the window, nothing's safe.

Scot_39

Supply Contracts in tbe real world are revised .

And we have our energy minister openly writing to energy suppliers to have them break fixed contracts in April.

often just 12m contracts as now bad for consumers.

Just as upto 25 year fit contracts are now proving a very bad deal for consumers.

If all other generators were making 10x market rates - would you be happy to pay far more for your import energy wh3n your solar doesnt cover your needs ?

wakeupalarm

https://forums.moneysavingexpert.com/discussion/comment/81857960#Comment_81857960

It's not a contract according to the Government.

"A number of responses from private individuals suggested that any change to their FIT tariff would constitute a breach of contract. As set out above, the FIT scheme does not involve any contracts between the government and FIT generators. When they join the scheme, FIT generators enter into a “FIT Agreement” or “Statement of FIT Terms” with their electricity supplier. Suppliers make payments to FIT generators based on tariff rates. The means by which these rates are indexed to inflation is set out in legislation. The government is entitled to amend this legislation, subject to established parliamentary and legal processes."

Doc_N

https://forums.moneysavingexpert.com/discussion/comment/81858356#Comment_81858356

Which is exactly what they have to say to justify the decision, but the ultimate arbiter is not the government but the courts of course.

JKenH

I asked ChatGPT what the legal position is.

Here are the actual statutory provisions and legal texts that underpin Feed-in Tariff (FiT) payments in the United Kingdom, so you can see exactly where the legal rights and obligations come from:

📜 1. Feed-in Tariffs Order 2012 (Statutory Instrument

The UK FiT scheme is governed in law by the Feed-in Tariffs Order 2012 — a statutory instrument made under powers in the Energy Act 2008. This Order:

•Creates the legal Feed-in Tariffs (FIT) scheme framework.

•Defines key terms such as accredited FIT installation, FIT generator, FIT licensee, FIT payments, generation payment and export payment.

•Requires the Gas and Electricity Markets Authority (Ofgem) to administer aspects like accreditation and the central register of installations.

•Includes provisions on how the scheme operates and how levelisation (cost sharing among suppliers) works.

Key point: This Order is law — it is not merely guidance or policy. It is enforceable as legislation made under the Energy Act 2008.  

🔹 Example from the Order:

The definitions section lists the terms that constitute the legal mechanics of the scheme (e.g., “FIT payments”, “generation tariff”, “FIT licensee”).  

📋 2. Standard Licence Conditions 33 & 34 (Electricity Supply Licence)

In addition to the statutory Order, the scheme’s legal obligations are reflected in conditions inserted into the Standard Conditions of Electricity Supply Licences (specifically Conditions 33 and 34):

•These conditions are part of the electricity suppliers’ licences — licences they must hold in order to supply electricity in Great Britain.

•They legally oblige “FIT licensees” to register generators and pay them the applicable FiT tariffsonce an installation is accredited.

•They define the structure of the payments (generation and export), timing, meter readings, ongoing duties and administrative processes.

Ofgem explains that the legal basis of the FiT scheme is:

•The Feed-in Tariffs Order 2012, and

•Conditions 33 and 34 of the Standard Licence Conditions of electricity supply licences.  

Together, these form the backbone of the FiT legal framework.

📌 3. Secretary of State Determinations

Under the Feed-in Tariffs Order 2012, the Secretary of State (for Energy) must make certain determinations that have legal effect, such as:

•How much electricity is deemed exported when there’s no export meter — which affects export payment calculations.

•Other technical or operational details required for the scheme’s administration.

These determinations are also legally required by the Order and inserted into the legal framework by statutory procedure.  

📘 4. Closures and Amendments

The FiT legislation has been amended from time to time through Amendment Orders, which change how parts of the scheme operate (e.g., deployment caps, eligibility rules). These amendment Orders are also legally bindingonce made and entered into force.  

The scheme was closed to new applicants on 1 April 2019, but existing accredited installations continue under the terms that applied at the time they were accredited.  

📑 How These Instruments Work Together

Here’s the legal hierarchy:

1.Energy Act 2008 – gives the Secretary of State power to make the scheme.

2.Feed-in Tariffs Order 2012 (and Amendments) – the statutory basis of the scheme (actual law).

3.Standard Licence Conditions 33 & 34 – licence conditions that give suppliers legal obligations to pay FiT.

4.Secretary of State Determinations – legally required operational details set each year under the Order.

Each of these is literally part of UK law — not merely guidance or voluntary codes.

🧾 Key Statutory Texts You Can Read

Here are the actual legal sources:

🔗 Feed-in Tariffs Order 2012 (full legislation text) – contains the statutory framework of the scheme. Feed‑in Tariffs Order 2012 on legislation.gov.uk

🔗 FiT Determinations (Year 16, 2025–26) – example of a legally required Secretary of State determination under the Order. Feed‑in Tariffs (FITs) determinations 2025–26 on gov.uk

(The Standard Licence Conditions themselves are part of Ofgem’s licence documents — available via Ofgem’s website and linked legislation pages, but the legal obligation arises because they are conditions in the licence.)

📌 Summary: What This Means Legally

✔ FiT payments are grounded in UK law:

They are not mere promises — they arise under a statutory scheme plus legally binding licence conditions.  

✔ You have enforceable legal rights:

If a supplier fails to meet its obligations under these laws and licence conditions, there are regulatory enforcement mechanisms (via Ofgem’s powers under the Electricity Act 1989) and contractual rights.  

✔ But the law can be changed:

Because the scheme is statutory, Parliament or Ministers can amend the Order or licence conditions in future (within constitutional limits). These changes can affect future payments or terms, subject to transitional protections.