Only two months left to claim higher solar panel subsidies

Householders have just under two months to take advantage of higher subsidies to invest in solar panels.

This is because the Government announced last week it was reducing the money it pays householders by more than three per cent from July 1 until October 1 when the figures will be reviewed again.

Ron Fox said the main advantage of installing solar panels is the Feed-in Tariff or FiT payment, which is the money the Government pays people for generating electricity every year.

At present it is index linked and householders receive 15.44p per kilowatt hour for 20 years under the Generation Tariff plus the Export Tariff, which adds an extra 4.5p per KWh for electricity exported to the Grid.

From the beginning of the month after next these the first rate will fall to 14.90p per kilowatt hour but the second tariff will be increased to 4.54 per KWh.

But Ron, who runs Noreus in Stafford, said it was still a worthwhile investment, especially as the subsidies were index linked for two decades and also because the cost of panels has fallen by half in the last two years from around £14,000 to £7,000 today for a 2.5 kilowatt system with 12 panels on an average semi-detached house.

The not-for-profit energy group Ebico calculates that the annual income at the moment generated by the investment is up to seven per cent; the solar panels will pay for themselves within 14 years and the householders would receive an extra £3,000 every year for the remaining six years.

The Energy Saving Trust, a non-profit organisation jointly funded by the Government and the private sector to promote the use of green energy, points out that those residents would also save on average £237 a year in energy bills and one tonne of carbon dioxide a year going into the atmosphere.

“Compared to the banks and other investments, where else can you get a return like that on your money?” asked Ron.

At the same time as the reduction in the Feed-in Tariffs was announced Ron said he was pleased that the Department of Energy and Climate Change’s report on public attitudes showed that solar energy remains the most popular form of renewable energy generation among the British public.

Of the 2,051 households surveyed, 85 per cent expressed their support for the green energy in the UK, up from 82 per in the last quarter.

Wind and tidal technologies were backed by 77 per cent of those surveyed with offshore wind and biomass just behind at 68 per cent and 64 per cent respectively.

But he added: “The survey was really encouraging and showed that the vast majority of people supported the green industry.”

For more details about investing in solar panels and other energy-saving ideas call Ron on 01782 756995.