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The Case For Solar PV?

It has been almost impossible to miss the storm surrounding the governments proposed reduction in the feed in tariff (FIT). The feed in tariff is the amount of money that people receive through generating their own electricity –usually using solar photovoltaic panels (Solar PV). The proposed reduction in the feed in tariff has already decimated the whole business sector of installers.

The situation today, which is January 27th 2012, is that the government has lost a high court ruling and so at present it is possible that the 43p feed in tariff is back in force. However the government is going for a final appeal. If the government loses then the 43p tariff will sustain until March 3 when they will be able to reduce it we understand. At present none of the retail electricity companies are advertising the higher rate whereas the installation companies are all publicising the 43p tariff everywhere.

Before the proposed feed in tariff reduction people were promised returns of around 15% a year tax-free from solar panels, if you took into account savings in energy bills and what could be generated by the feed in tariff. Many thought this was always unsustainable in the long-term. In fact the industry generally accepted new rate of £.21 which is less than half of the previous rate of £.43 for every kilowatt hour of electricity generated.

The new argument from March the 3rd will be that a rate of return of about 10% a year is possible based on the 21 p tariff which if looked at simply as an investment still beats anything currently available from any UK bank or building society.

Just to be clear Eco-1 is not a domestic installer and has no vested interest in the installation of domestic Solar PV.

That said if you were looking at Solar PV previously and hadn’t quite decided it would seem that you should act quickly – get your quotes in now and be ready to act as soon as clarity is restored. 43p per kilowatt hour is one heck of a good deal. It’s not often that you get a second chance and this would seem to be it. Oh and don't forget that your installer must be MCS registered in order to get the tariff.