Since the Government launched the Feed-in-Tariff Scheme back in 2010, it’s about to have the biggest shake up yet. According to the latest reports, the Government are proposing to cut solar panel earnings from £515 per year to £135 per year, leading to the phased closure of the scheme in 2018-19.
The FIT scheme has significantly exceeded the Government’s expectations in terms of the number of solar panel installations to date. The 2010 Impact Assessment on the FIT projected they would reach 750,000 installations by 2020 – by the end of July 2015, they’ve already reached over 730,000. The Government is therefore likely to meet its objectives ahead of schedule. The consultation process calls for a fundamental review of the scheme, intended to control scheme costs effectively.
Proposed Generation Tariffs for Jan 2016
The rate is due to drop slightly from 12.92p/kWh to 12.47p/kWh from 1 October 2015 but the amount that is paid for energy generated from solar panels is set to reduce significantly from January 2016 to 1.63p/kWh.
As reported by the DECC, changes are likely to take effect as soon as legislatively possible, which they expect will be January 2016.
Existing installations and all installations registered before 1 January 2016 will not be affected.
We are experiencing a surge in demand before the FIT is due to come into force on 1st Jan 2016. It’s a move again by the government to cut costs amid fears that it could exceed its spending limits for clean energy subsidies by £1.5bn by 2020. We believe solar will still live on as energy prices continue to rise and we hope to see the price of systems reduce dramatically as we did in 2011/2012.
Can I beat the cuts?
Yes. The amount you are paid for the energy generated from solar panels is based on the rate on the day you register for the feed-in-tariff. That tariff is then set for 20 years (and rises with inflation). So if you’re considering installing solar panels at your property, now is the time to start to speak to us and begin the application so the panels are installed by Jan 2016 and you benefit from the higher tariff.
While the cuts are currently only proposals, it appears inevitable that the feed-in-tariff will drastically decrease. By how much is still unknown. For more information on Solar and to take advantage of the current rates before the big cut, call us now on 01226 763 127.
DECC Consultation on a review of the Feed-in-Tariffs scheme