The photovoltaic solar industry has urged ministers to abandon plans for more cuts in the feed-in tariff as early as July.

With the current 21p feed-in tariff homeowners are making fantastic returns, especially with the recent reduced cost of solar photovoltaic panels. However, further reductions are being planned for July.

But the solar industry is worried that further cuts could irreparably damage the photovoltaic industry. But remember, once the panels are installed, you’re guaranteed that feed-in tariff rate for 25 years, no matter if further cuts are made.

Installing photovoltaic panels before July 1, will guarantee:

  • A feed-in tariff rate of 21p/kWh for 25 years, as opposed to a reduced tariff
  • Return of investment between 10% and 15%

However, postponing the installation until after the July deadline and you risk:

  • Not making a return on your investment
  • Receiving a reduced income, as rates drop by over 25%

Director of Eco Environments, David Hunt, has also joined the Cut Don’t Kill campaign to urge the DECC to scrap proposals in the UK photovoltaic market.

According to the Government, from July 1 feed-in tariff rates for photovoltaic installations could fall from 21p/kWh to 16.5p or 15.7p. It could even fall as low as 13.6p, depending on the uptake of solar in 2012.

Talking about the Government’s proposals, Hunt said: “This is the final chance for consumers to secure a fantastic return on investment if they go ahead with a solar PV installation before July 1.

“After this date, the FiT rate will drop dramatically to 15.7p and potentially lower still, which will make a domestic solar PV scheme appealing only to the really green investors rather than those who are coming at it mainly for the eye-watering financial returns.”

The tariff rates already dropped over 50% on March 3 of this year and Solar Trade Association’s chief executive, Paul Barwell, said: “Despite all the reported ups and downs for the solar industry in recent months we want to get the message across to householders that solar is a good investment at current tariff rates.”

The STA have become increasingly concerned with reports that photovoltaic companies have seen a drop in orders. They’re worried that this trend could be after the feed-in tariff cuts and homeowners not realising that return rates still equal 2011.

Mr Barwell added: “Cutting the tariffs in half may look drastic, but the public need to understand this is not a problem for them because the costs of solar have fallen so fast. Solar is a great investment and spring is a great time to invest.”

After the Government was heavily criticised following the last cuts, and a lengthy legal battle followed, many feel this is yet another step too far from the DECC. Hunt continued, mentioning that the Government are killing thousands of jobs and taking on one of the best investments away from consumers.

Hunt added: “Perhaps the Ministers responsible will one day explain why they have been so hell-bent on hurting both industry and the consumer with their reckless policies.”

If you’re interested in photovoltaic panels for your home, it’s best to act now before new proposals come into being. Receive the 21p/kWh rate, guarantee a great return of investment and above all, generate free electricity for over 25 years.


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