New rate change for solar Feed in Tariff

Solar panels part of the Green Deal initiative

The solar industry is today coming to terms with the Governments long term plan for the Feed In Tariff (FIT).  For all installations that happen before the April 2012 customers will get the current rate of 43p per Kilowatt per hour.  For installations made after the end of March 2012 customers will get paid 21p per kWh.

The new revised price of 21p is going to be revised on an on-going basis, some suggesting every six months.  The theory is that the Government will be able to change the price in line with the costs of installing solar panels.  The current cost for an average installation is somewhere in the region of £6000, which has come down by 45% since 2009. This would mean that consumers are paying off the cost of installation much faster than initially predicted and so the Government wanted to adjust the subsidy paid for the electricity generated.

The Government has added a qualification that households will need to have an Energy Performance Certificate (EPC) of at least band D to qualify for the subsidy.  This will mean that the most underperforming houses will need to update their current insulation and energy consumption by  up-dating glazing or boilers for instance, before they can apply for the FIT.

The solar industry is concerned that the halving of the subsidy is going to make some of the larger projects unfeasible.   Industry leaders are also concerned that jobs will be put at risk in this fledgling industry.   Since it was introduced the FIT has helped the industry flourish and this mini boom in installations is what has let the Government to introduce such a steep cutback.  Solar panel providers are saying that the cut is too much too soon and does not give the industry time to adapt to the new prices.

If you are in the Solar industry we would love to hear your opinion on the new tariff and how you think it will affect your business and the Green Deal in the future. Please leave your comments below.