Thinking of installing solar panels? Then act now
Householders have just two months to take advantage of higher returns from installing solar panels after the Government announced another cutback in subsidies last week.
The Department of Energy and Climate Change (DECC) said that the Feed-in Tariffs scheme would be cut by almost a quarter from 21p to 16p per kilowatt hour (Kwh) from August 1.
Although this is a month later than the planned July 1 date the Coalition has announced at the same time that it is reducing the lifespan of payments to residents from 25 years to 20 years and will now consider reducing the payments even further every three months.
“To take advantage of these generous payments people thinking of installing solar panels should act now,” said Midlands energy expert Ron Fox of Noreus Ltd.
At present the Feed-in Tariff – the money the Government pays householders for generating electricity – is paid at two rates.
The Generation Tariff is at 21p per Kilowatt Hour for all electricity generated and is topped up with the Export Tariff, which adds an extra 3.1p per KWh for electricity exported to the Grid.
Ron added that the big benefit for people was that those figures were tax free, index-linked to retail prices inflation and were guaranteed for 25 years if they beat the deadline – and people would not lose out even if Feed-in Tariffs were cut in future.
Also by installing green technology he added that people were using solar energy to cut their electricity bills and earning up to 10 per cent from their investment.
Although the DECC said the new tariffs would still give a return on investment of more than six per cent they also pointed out that the subsidy on the energy exported back to the Grid will rise from 3.2p to 4.5 Kwh and that the cost of installing solar panels on an average house has fallen to £7,000 compared to £12,000 a year ago.
However, within the last 12 months the subsidy paid by the Government has been cut from 43.3p per unit last year to the present figure of 21p and the August figure of 16p.
The Government claimed that their plans will bring ‘certainty’ to the solar panel industry.
Energy and Climate Change Minister Greg Barker said: “We can now look with confidence to a future for solar which will see it go from a small cottage industry, anticipated under the previous scheme, to playing a significant part in Britain’s clean energy economy.
“I want to send a very clear message today. UK solar continues to be an attractive proposition for many consumers considering microgeneration technologies and that having placed the subsidy support for this technology on a long-term, sustainable footing, industry can plan for growth with confidence.”
For more details about installing solar panels call Ron on 0845 474 6641.