If you’ve been considering Solar Photovoltaic (PV) for your home or business, then with the planned changes being brought forward, then it really is time to act NOW. As the saying goes Act Now or Regret at Leisure (sic).
Too many times in life we say “If only I’d” or “I could have”, or “They were lucky”.
Back in February 2011, the Government announced a Strategic review of the Feed-in Tariff Scheme, aka FiTS or FiT. that review was originally scheduled to be delivered at the beginning of 2012 (January) with implementation form March 2012, and at the time it was widely believed that it would result in a slightly large increase in the degradation rates of the Feed-In Tariff Scheme, i.e the rates would go down.
Well early indications from Greg Barker are that it will do far far more than that. FiTS was NEVER intended as an investment vehicle for pension funds, in lieu of Tax free ISA’s as the like, well in the case of Solar PV, that is EXACTLY what it has become.
Over the past 2 years the cost of the materials associated with the installation of a Solar PV has fallen dramatically and Solar panels have in the wholesale market place now become a commodity as opposed to a specialist item, with even main-stream electrical distributors stocking all the parts for a solar PV installation. The effect of this is that the capital cost of installing a 4kWp system has fallen from around £20,000 to less than £14,000 and 50kWp systems have fallen from £250,000 to around £125,000 – £150,000.
So what has that got to do with you? As I mentioned above, the original purpose of FiTS as stated on the Government’s website is:
Through the use of FITs DECC hope to encourage deployment of additional small scale (less than 5MW) low carbon electricity generation, particularly by organisations, businesses, communities and individuals who have not traditionally engaged in the electricity market. This will allow many people to invest in small scale low carbon electricity, in return for a guaranteed payment for the electricity they generate and export.
It was never supposed to be what it has become – the most lucrative investment opportunity in the UK.
The problem is that the Government has changed it’s tune, in the early days they were happy to promote it, as you can see in our download : Worcester Renewables – Free Guide to Investing in Solar PV Greg Barker was more than happy to encourage people to invest in Solar PV when he said
“Feed-in Tariffs provide some of the best secure investment returns available in the market”
Greg Barker, Climate Change Minister
Well, a lot of people took his advice, and the effect was a massive increase in the take up of solar PV – just what he wanted!
However all FiTS payments despite being paid by the electricity companies from a surcharge on all electricity bills is under EU rules considered Government expenditure, and with Strategic Spending Reviews in place, Greg Barker had to cut expenditure in this area. The catch 22 situation here is that cutting FiTS immediately stats to undermine the whole Government Green / Renewables investment strategy and may cause them problems with meeting their EU renewables targets.
So what did they do – First the launched the Strategic Review – what was supposed to be a year long exercise looking at the fundamental structure of the FiTS – and secondly the launched an emergency review which came into force in August and promptly killed of all the large scale solar PV investment.
Well the Strategic Review is about to be published – most sources are suggesting mid October, and the outcome is expected to be swift and hard, the key things are a MASSIVE CUT in FiTS payments to new Solar PV installations, and instead of waiting until April 2012, it is anticipated that this could come in as soon as JANUARY 2012, even back in August, I was predicting that it could go as low as 30p / kWh (for =< 4kWp systems) compared to the current 43.3p / kWh – and that would be in line with the above (£14,000 / £20,000 x 43.3p = 30.3p), some people are predicting it could go as low as 26p / kWh.
The time to act therefore is NOW – don’t delay for a free quotation click here: Request Your FREE No-Obligation Quote
To find out just how LUCRATIVE the current scheme is – and to see how much you will earn from the FITS – Click here: Energy Saving Trust – CashBackCalculator
For more background information on how rapidly this area of FiTS see these recent articles:
Worcester Renewables Ltd is an MCS Registered Installer of Solar PV systems and installs both Domestic and Commercial Systems, and is registered with and bound by the REAL consumer code.