‘Feed In Tarif’ Cuts on Solar Panels
Posted on November 12, 2011 by Rodney Hewitt
Anyone who has shown interest will in Solar Power will have no doubt heard the recent news about the Governments drastic cut in Solar Panel Feed in Tariff rates.
In a shock u-turn the Government has decided to cut the rate of FIT from 43.3p down to 21p and most surprisingly the cut will take effect from December 12th !! To add more bad news they also informed homeowners that to qualify for the 21p rate, they would need a Green Certificate for their homes, if not the rate would drop further to a dismal 9p!!
In truth the news was a hammer blow to a booming industry and immediate appeals against the governments ruling were lodged and a sustained period of uncertainty now seems to be in the offering.
In the short term however the decision has created a Gold Rush within the industry as homeowners who were considering installing solar power, scramble to have the work completed before the December 12th deadline. Any installation needs to be not only completed, but registered with the MCS and the FIT forms need to be with the power supplier before Dec 12th….. Hectic times ahead!
As for long term effect there is no shortage on views on the matter. Our own view is that in fairness the FIT rate needed to be reduced to reflect the fall in material cost for solar panels & related products. At present a homeowner who paid between £10,000 – £12,000 for an installation could see a return of over £35,000 in 25 years, most would agree that’s a little too generous. However a cut of over 50% will pretty much end an industry that at present is employing over 35,000 people in the UK, surely this can’t be cost effective.
Our hope is that between the parties involved in the appeals a middle ground can be found.
In the mean time we have at present over 125 Solar Panels to install in less than 4 weeks!!! Let’s hope they all get completed in time!