OpenConsultation consultationoutcome

Feed-in Tariffs (FiT) scheme: indexation changes

Applies to England, Scotland and Wales

This consultation has concluded

Read the full outcome

Detail of outcome

This consultation invited views on 2 proposals:

  • Option 1 Change inflation indexation of the Feed-in Tariffs from the Retail Price Index (RPI) to the Consumer Price Index (CPI). This would come into effect in April 2026
  • Option 2 A temporary freeze of the Feed-in Tariffs at the 2025 to 2026 level, taking effect from April 2026 (subjective to legislative schedules) and a gradual realignment with the CPI

The government response confirms our decision to pursue Option 1.

From April 2026 the Feed-in Tariff rates will be adjusted annually in line with CPI. This will come into effect for the next FIT year (2026 to 2027).

Next steps

To change the inflation indexation metric for the FiT scheme for the 2026 to 2027 financial year the UK government will take the necessary changes to legislation.  

Following this, Ofgem will publish updated CPI-indexed tariff rates for the 2026 to 2027 period, along with any supporting materials.

Detail of feedback received

We received 2,800 responses to this consultation, representing a wide range of stakeholders, including:

  • individual FiT generators
  • small-scale and community owned generators
  • large generators who own and operate FiT assets
  • industry bodies
  • consumer groups
  • investors
  • councils and public sector bodies
  • research bodies
  • solar provider
  • utilities

Original consultation

Summary

We're seeking views on proposed changes to inflation indexation for the Feed-in Tariffs (FiT) scheme.

This consultation closesran atfrom
to

Consultation description

The UK government is proposing changing the inflation indexation calculation for the Renewable Obligation (RO) and Feed-in Tariffs (FiT) schemes, from the Retail Price Index (RPI) to the Consumer Price Index (CPI):

  • for the Renewable Obligation (RO) scheme, the inflation indexation calculation for the buy-out price would be changed by Ofgem from RPI to CPI
  • for the Feed-in Tariffs (FiT) scheme, the annual tariff adjustment calculation would be changed from RPI to CPI

The indexation change would come into effect in April 2026 and would affect all UK generators on the RO and FiT schemes.

Changes to inflation indexation would lower the annual subsidy uplifts for generators and reduce the cost of these schemes for UK consumers.

Respond to the FiT scheme consultation via the link on this page.

Respond separately to the RO scheme consultation

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