Further cuts for solar feed-in tariff expected in July and October

Homeowners and businesses wanting to install solar panels should do so now to avoid further cuts to the feed-in tariff. From April 1, the tariff will only be 9p/kWh for inefficient homes, while the maximum rate will be 21p.

This was only cut from 43.3p/kWh last year after the Government noted the scheme had been more popular than first anticipated. And after another review the Department of Energy and Climate Change have decided that further cuts are needed to preserve the scheme.

Under new guidelines, the rate could be slashed to 13.6p/kWh in July and 12.9p in October. But the good news – installing a solar PV system before the cut-off date will ensure you’re locked onto the 21p tariff for 25 years (as long as your home’s energy efficient).

There has been a solar boom in the last couple of months, with homeowners rushing to beat the April 1 deadline. And this news will only increase the number of homes cashing in on the higher feed-in tariff rate before it’s too late.

Regarding the April 1 deadline, homeowners need to ensure they’ve installed a solar panel system if they’re home is not energy rated D or above. Installing after this date will see them with only 9p/kWh, unless they install insulation to bring their property up to scratch.

After the Government received a lot of criticism last year for proposed cuts, they want to make the solar industry more secure and stable. It has been suggested that future reductions will keep in line with the reduced costs of solar PV units, which have already dropped 45% since 2009. Reviews will be carried out every six months.

If it wasn’t obvious, the time is now to install solar panels. If you’re seriously considering PV for your home to generate free electricity and make the most from the Government’s feed-in tariff, it has to be installed as soon as possible.

If you’re still undecided on whether solar is right for your home, them the following list of benefits should persuade you.

As long as you have a south or southwest facing roof, there’s no reason why solar won’t bring you a wealth of benefits. Of course, two of the biggest factors are the profit you’ll earn.

Firstly, solar panels generate free electricity from the sun’s rays, so your electricity bills will see a reduction of around £200 a year. When you add this to the money that’ll come in from the feed-in tariff (on average £500 a year with the 21p tariff) you’ll make back the initial investment and build a healthy profit.

Over the 25 year life expectancy, solar panels will provide around £18,000. And what’s more, if you decide to sell up you’ll get your investment back because they’ll increase the value of your property.

You’ll also be generating this free electricity without any maintenance costs. Solar panels aren’t prone to failure and very rarely need any repair work. All you need to ensure is that they’re not overshadowed by trees, as this will limit their efficiency.


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