Homeowners who install solar panels will be paid less for the electricity they generate from today - 16p/kWh down from 21p/kWh.

The Feed-in tariff pays homeowners who have solar panels, hydroelectric systems, micro combined heat and power systems, anaerobic digesters or wind turbines.

-- Advertisement --

These changes only affect solar panels and also include:

•the length of time consumers will get the FIT for is being reduced from 25 years to 20 years

•the export tariff, for every unit of electricity generated by the system and sent to the grid, will increase from 3.2p/kWh to 4.5p/kWh

•for houses with an energy performance certificate lower than band D (see our guide to guide to energy performance certificates), the FIT generation rate drops even further to 7.1p/kWh.

These changes will not affect existing installations, only those installed after 1 August 2012.

(CD/GK)