Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the potential merits of increasing the feed in tariff in line with the increase in energy costs.
Support under the FIT scheme, which is closed to new entrants, aims to deliver returns of approximately 5-8% for investors in small-scale low-carbon generation. The methodology used to set the tariffs considers the technology costs and electricity generation expectations and not the retail price of electricity. The tariff rates are adjusted annually, in line with the Retail Price Index (RPI). FIT generators also benefit from a reduction in their electricity bills when the electricity is used onsite and import costs are avoided.