The feed-in tariff for solar panel installations

The Government has been supporting solar panel installations for the last few years with the feed-in tariff scheme, which rewards those who generate their own renewable energy. It’s been such a popular scheme that homeowners, local councils and businesses have taken advantage of the cash incentives.

current 21p/kWh rate offering around £500 a year. It’s a superb incentive to install solar panels

And there is a lot to be earned through the scheme, with the current 21p/kWh rate offering around £500 a year. It’s a superb incentive to install solar panels on your house and every home should certainly look at the possibility.

When you add the feed-in tariff profit to the reductions in your energy bills, you’ll end up with a substantial saving. Remember that once your solar panel installation is fitted and registered to the feed-in tariff, you’ll be locked onto the rate for 25 years.

The future of the feed-in tariff

It’s now certainly the time to take advantage of the feed-in tariff scheme, because rates will only be reduced. The Government have already announced that the feed-in tariff will be cut from the current 21p rate in July and October, depending on the scheme’s popularity and solar panel installation costs.

And from April 1, new installations on inefficient homes will only see a rate of 9p/kWh. Each home wanting to receive the top tariff will have to upgrade to an Energy Performance Certificate (EPC) rating of level D or above.

The solar feed-in tariff rates

  • All solar panel installations fitted until April 1, 2012, will receive 43.3p/kWh. After this date, those installed after December 12, 2011, will see a 21p tariff
  • Installations until March 3 could also benefit from the 43.3p rate for 25 years, depending on the outcome of the Government’s Supreme Court challenge
  • After April 1, new solar panel installations on inefficient homes will receive just 9p/kWh. A home must have an efficiency rating of D or above to qualify for the higher tariff

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