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UK reduces subsidies to “overcompensated” solar panel owners
- 2 months ago (2026-01-29)
- David Flin
Ed Miliband, UK’s Minister for Energy Security and Net Zero, has reduced a green energy subsidy after deciding it had overcompensated solar panel owners. He said that the Government would change the payments that people who installed solar panels under the Feed-In-Tariffs (FIT) scheme between 2010 and 2019 would receive.
13th Gas Turbine Focus Conference and Exhibition 2026 (GTF 2026)
The scheme guaranteed payments for producing electricity from solar power for between 10 and 25 years uprated by inflation every year. However, the Government has now said that this inflation link has “overcompensated generators and increased the policy costs of the scheme over time.”
From April, payments will no longer be uprated by the retail prices index (RPI), but instead by the consumer prices index (CPI). It is expected that this will result in a fall in revenue paid of 6.6 per cent by 2036 compared to if no changes had been made.