Towards the end of last week, the government finally put an end to the doubt surrounding the domestic Feed In Tariff rate and announced that the new rate from 8th February would be 4.39p for solar installations below a 10kw system.
More than 100,000 people and businesses across the UK raised concerns when it was announced earlier in the year that the FIT scheme would take an 87% cut to 1.63p, a move that would have sent the solar industry hugely in the wrong direction. The solar industry is one of a lot promise and although the new rate is better than first predicted, it's still felt that a 63.5% reduction isn't the best outcome.
However, the cuts do feel contradictory since the world has in the last couple of weeks committed to climate action following the COP21 in Paris. The UK government could have seized the opportunity to ride this crest of positivity by backing the solar industry further.
It’s certainly not the end of solar industry. Journalists and the media have predicted the death of the industry when huge cuts have been announced to a Feed In Tariff rate that has been as high as 40p in the past. However, as the price of solar panels has fallen, so has the subsidies. Even once the new rate is introduced in February, solar energy will still be an attractive proposition for forward-thinking homeowners who want to do their bit to reduce global carbon emissions and protect themselves against increasing energy prices.
There is still time for people to take advantage of the current FIT rate of 12.47p early January 2016 providing homeowners react quickly. From the middle of January, there will be a cut off point for PV solar installations to be installed using the current rate. Our advice is to book a solar site survey early January to avoid disappointment. Call us on 0116 270 1296.