This week we received a letter from MP Gregory Barker, with some information concerning solar and the Government’s plans for renewables. The letter remained positive with its backing of renewable technology and also commented on the fact that a 4kW system now costs £11,500 less than two years ago.
As it currently stands, installing solar panels at this price could pay for themselves within 8 years due to the Feed-in-Tariff (FiT) payments and the reduction in electricity bills. The FiT payments would be guaranteed for a further 12 years (20 years in total) and the savings on your electricity indefinitely, resulting in serious earnings by the homeowner.
With the FiT payments being indexed linked and set to rise with inflation each year, along with increased savings as energy prices rise year-upon-year, solar panels remain a smart investment.
“Installing before the deadline requires a few potentially time-sensitive steps.”
There are now only a few weeks left before the latest tariff cuts take effect, which doesn’t leave a lot of time to gather some prices, book an installation date and submit your information in time to qualify for the current Feed-in-Tariff (FiT) and earn up to £13,500 more than installing after August 1st.
The first step is to find out how much a system would cost for your property. Even if you have received a quote in the past, but a few months ago, then with the market as competitive as it is, you should definitely look to get some up-to-date prices.
Once you have some quotations from reputable installers and you can decide which company you would like to go with, then there is only a small window left for them to install the panels and register the installation for you to qualify for the FiT.
Be careful not to leave it too late. Companies are generally pretty fast at quoting, and installation times can take as little as 2 days for a typical residential install, but companies have a busy calander leading up to the tariff cuts which can delay your install date for a few weeks, and the installation needs to be completed with enough time left to get the paperwork done so you receive the FiT.
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.