Guarantee the Higher Solar Tariff for Inefficient Homes before April 1

Inefficient homes will be guaranteed the top solar feed-in tariff rate if installations are completed and registered before April 1. Leaving it until after this date could result in your solar panel system receiving the reduced rate of just 9p/kWh, rather than at least 21p. This change will affect homes that fail to have an Energy Performance Certificate (EPC) rating of level D or above, but acting before the cut-off date will ensure you keep the higher rate.

After recent discussions the Government will reduce the feed-in tariff rate for inefficient buildings to just 9p/kWh. This is an 80% reduction from the possible 43.3p tariff and if successful would come into effect from April 1.

Properties would have to meet an Energy Performance Certificate (EPC) rating of level D or above to qualify for the higher tariff. The other option would be undertaking all measures identified on an EPC which are eligible for Green Deal finance. For many buildings this would mean investing in wall cavity insulation, loft lagging or double glazing and would cost thousands of pounds.

But installing a solar photovoltaic (PV) system before the cut-off date would keep you locked onto the higher rate for at least 25 years and could bring you a profit of over £18,000.

The Energy Saving Trust said: “Where a domestic property does not meet these energy efficiency requirements, the solar PV [photovoltaic] installation may receive the lower tariff of 9p/kWh.”

A spokesperson for the Department of Energy and Climate Change (DECC) said: “It makes sense that, if someone is putting solar panels on their building, the property is energy efficient too.

“We consulted on the best ways of doing this by linking tariffs to specified minimum energy efficiency requirements and proposed introducing such a requirement from April 1.”

The benefits of solar PV

25-year income – Solar PV systems bring a wealth of benefits to your property and require little maintenance to ensure they’re fully functional for their life expectancy of over 25 years.

Reduced billsSolar panels use natural energy and will generate free electricity from the sun’s rays. This has the instant advantage of cutting your energy bills substantially and a 3kW system can reduce your electricity bills by up to 77% annually.

Earn up to 43.3p/kWh – Guaranteed to be 21p but if the Government’s Supreme Court appeal is unsuccessful, it’ll be 43.3p for at least 25 years if installed before March 3. The Government’s FIT scheme can generate a profit of over £1,400 ever year, at the 43.3p rate. FIT pays out for every unit of electricity your system produces.

Export to the National Grid – If all this wasn’t enough, there’s also the export tariff. So if it’s a particularly sunny day you’ll end up with more electricity than you need. You can export this energy to the National Grid at a rate of 3.1p/kWh. Off-grid and hybrid systems also store electricity on batteries to use when the solar panels aren’t active.

Reduced carbon emissions – Environmentally, solar panels are excellent as they’re part of the renewable energy group. Renewable energy is a large part of the Government’s agenda, in an effort to cut carbon dioxide emissions and produce environmentally friendly heat and electricity.

Carbon is one of the main contributors towards the acceleration in global warming. Because of this, the EU has set Britain a target of generating 15% of energy through renewables by 2020.

Feed-in tariff changes

The Government’s decision to slash the feed-in tariff rate from December 12 to 21p/kWh was met with criticism from environmental groups and solar companies. Together they made a legal challenge against the Government’s proposals and successfully won the High Court case.

The Government are appealing the ruling and if this case is unsuccessful homeowners who installed units between December and March will revert to the higher tariff (43.3p/kWh) and will receive backdated payments so they are not out of pocket.

However, the Department of Energy and Climate Change still believe the cuts are not illegal and have appealed to the Supreme Court in a bid to overrule the High Court’s decision.

As it stands, any solar PV system installed before March 3 will benefit from the 43.3p tariff. Installations after that date will only receive the 21p tariff. But if the Supreme Court grant the Government’s wishes, all systems installed from December 12 will receive the 21p rate.

Despite this, the feed-in tariff for a 3kW system will still reward you with over £500 annually. When you add this to your monthly electricity bill savings you’re looking at around £15,000 profit over 25 years.

However, if you leave your solar PV installation until after April 1, you may only be eligible for the 9p tariff rate. This would dramatically reduce your potential profit unless you invest in energy efficient measures for the property.


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