Like many people in the solar industry were suggesting, the government has postponed the reductions to the Feed-in-Tariff (FiT) from July 1st to August 1st.
It is worth looking at what else has changed with the FiT, and along with the date for the reduction, one of the main things is the duration that you will receive the payments for. This has been reduced from 25 years down to 20 years, which could mean a potential loss of £13,500 in cumulative payments.
Also, its worth remembering that the FiT is still definitely being reduced by 24% from 21p to 16p, and the tariff will be reduced every 3 months thereafter to maintain a return of 6% – 8% on your investment. One small positive comment is that the DECC will look at sales figures and installation costs for each potential reduction and possibly delay the date where applicable.
Obviously installing before August 1st will provide homeowners with a much higher yearly payment, and for 5 more years than those who install after August 1st, so expect solar installers to reach their capacity for installation dates over the next few weeks as demand increases.
A report in last weeks Telegraph waxed lyrical about the level of return homeowners could see from installing a solar panel system on their home.
The Department for Energy and Climate Change’s Clean Energy Cashback Scheme (Feed-in Tariff’s) is offering financial incentives to people investing in solar technology.
The scheme, introduced in April 2010 replaced the existing grants system and now homeowners are rewarded for every unit of electricity they generate.
Interestingly, Energy companies are required by law to buy back any excess homeowners generate.
The tariff’s only cover photovoltaic panel systems (electricity generating panels) at present but the previous Government had planned to introduce RHI – Renewable Heat Incentives from next April (2011).
The Telegraph’s column makes a lot of sense and I’m sure if you’re still sceptical about the financial benefits of installing a solar panel system on your home (or business), then it’ll certainly give you some food for thought.
Click here to read the full article now.
If you’d like to get your own quote for installing solar panels on your own home, use Solar Panel Quoter – instant online quotes without the need for a salesman to call.
photo credit: stevendepolo