Around 800,000 households across England, Wales and Scotland that receive Feed-in Tariff payments from solar panels will earn less over time after the Government confirmed a change to how the scheme is uprated.
From 1 April 2026, annual increases will be linked to the Consumer Prices Index (CPI) rather than the Retail Prices Index (RPI), which has historically been higher.
MoneySavingExpert founder Martin Lewis said the change was “not good news” for solar households, adding that “from 1 April it’ll get a little worse”, though he noted it could have been far worse.
What is changing from April
From 1 April 2026, Feed-in Tariff payments will rise in line with CPI inflation instead of RPI.
While payments will continue to increase each year, the switch means those increases are likely to be smaller. Ofgem will publish the new CPI-linked tariff rates for the 2026/27 year before the changes take effect.
Who will be affected
The changes apply only to existing Feed-in Tariff customers, as the scheme closed to new applicants in 2019 and was replaced by the Smart Export Guarantee.
Households already signed up typically receive fixed payments for generating and exporting electricity under long-term contracts, often lasting up to 25 years.
Because CPI is generally lower than RPI, households will earn less over the remaining lifetime of their agreements.
Are you one of the 800,000 households on the Feed-in Tariff paid to generate and export electricity? From 1 April it'll get a little worse. Full info... https://t.co/tdt1kIx6RZJanuary 28, 2026
Why the Government made the change and what it means going forward
The Government has argued that RPI can overstate inflation and that CPI is a more widely used and accurate measure.
It has also said the move will help reduce the overall cost of the scheme, which is funded through levies on household electricity bills. Earlier proposals to freeze Feed-in Tariff rates for several years were dropped following criticism, with Martin Lewis warning such a move would have been a “breach of promise”.
While the Government has stepped back from freezing payments altogether, the shift to CPI means many Feed-in Tariff households will still see their returns eroded over time, marking a quiet but significant change for long-standing solar incentives.
