Is the solar feed in tariff really 43p?

After last week’s excitement when the Government lost their appeal in the High Court and the solar installation industry began advertising installations at the 43p tariff rate, the last few days have seen one or two question that rate.

It’s true that the Government has applied for permission to appeal to the Supreme Court, (‘applied for’ mind you) in a bid to get the Appeal Courts decision overturned. If this does happen, then the 21p tariff rate will prevail from 12th December 2011.

However, there’s growing optimism that with 4 judges already ruling in favour of the solar industry, the Supreme Court would have a tough time finding in favour of the Government.

And the online ‘chatter’ last week was suggesting anything up to 8 months before a Supreme Court decision anyway.

Certainly, our network of approved solar installers have been telling us they they can supply and install at the 43p tariff before March 3rd, and a glance at the Google listings backs this up as many are quoting the 43p tariff rate in their Google adverts.

“Gold Rush”

And it’s not too far fetched an idea to entertain, that by chasing an appeal and stating on their own website that households shouldn’t rely on the tariff being 43p, the DECC might just be trying to put off a ‘gold rush’ of installations before 3rd March, which would severely dent the funds, the Government has put aside for paying the tariffs.

With today’s lower installation rates, even if the Government should win, the 21p tariff still represents a decent return on your installation investment, but if, as the solar industry thinks, the Government lose the Supreme Court action, then what an opportunity the 43p tariff represents!

Amidst all the talk of tariffs and returns on investments, there’s three things that may be overlooked:

“Tax Free”

Firstly, the generation tariff paid by your energy provider remains at 3p, and that’s on top of whatever the prevailing tariff rate is.

Secondly, tariff income is tax free.

Thirdly, energy prices will only increase (as a trend) so your savings off of your regular energy bills will only increase.

Lastly, with talk of households having to prove (or undertake additional insulation work) their homes energy efficiency, in order to qualify for future tariffs, the sooner you get on the tariff ladder, the better.

You can get an instant online solar panel installation quote from our easy to use website – Solar Panel Quoter and afterwards, we can offer to find you up to 3 local reputable companies to quote for the work you want doing.

photo credit: jordan smith


One thought on “Is the solar feed in tariff really 43p?”

  1. UPDATE:

    Due to the popularity of this blog post regarding the 43p tariff and whether it is or isn’t 43p, we thought we ought to bring to your attention that the MCS body, that deals with accreditation of members (your solar panel installation must be at least ‘signed off’ by an MCS accredited member, in order to apply for the solar panel tariffs) has apparently been warning its members not to guarantee the 43p rate when discussing installations with customers.

    They’ve gone on to say (apparently) that if a installation company does promise a homeowner the 43p tariff rate, and the Government do win a Supreme Court ruling and the 21p rate prevails, then that installation company could be liable for the difference in tariff payments to the homeowner for the 25 year period.

    So homeowners, if you’re promised the 43p tariff by your installers, then take it with a ‘pinch of salt’ as nothing is absolutely certain until the Supreme Court (if it gets that far) makes a ruling, and that could be months off.

    What is sure is that the Government have said that if the December 12th rate decrease to 21p is upheld, then any qualifying installations between 12th December 2011 and 3rd March 2012 will get the 21p tariff rate for the full 25 year tariff payment period.

    And at present, the tariff rate after the 3rd March 2012 looks set to be at 21p also, although, again, nothing is absolutely decided as that tariff rate proposal is still open to discussion and amendment.

    Hope that clarifies things a bit more for you all.

    If you would like to get an instant online price guide for your own solar panel installation, use the page link above to get your free, no obligation, online quote in a matter of minutes.

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