solar panels

Government Subsidy Cuts: Will they affect Domestic Solar?

In July, the Department of Energy and Climate Change (DECC) announced that they are cutting the subsidies for small solar farms from 2016. This means that anyone who installs a small-scale solar farm would not be eligible for the Feed-in Tariff Scheme (FITs), which pays them for the energy they generate and export back to the grid. The change doesn’t affect domestic rooftop solar at the moment. But how could it affect people who want solar panels on their roofs in the future?

Act Quickly

Whilst there are no plans for the government to cut FITs for homeowners installing solar panels onto their roofs, if you’re thinking about getting solar panels you should act now. At the end of 2015, the government will publish an impact assessment. They underestimated the amount of people that would choose to get solar panels, so it’s likely that they will cut domestic FITs next.
solar panels
It’s worth remembering that when the government launched the FITs in 2010, an average domestic solar photovoltaic system would have cost around £18,000 to install. Now, a solar PV system would set you back between £5000 and £8000, which is why the government has reduced the amount of money they pay to homeowners.

Even though the government has cut FITs many times since 2010, solar panels are still a worthy investment. There are still many benefits to installing solar PV on your roof:

  • Reduce your carbon footprint by using a renewable source to power your home
  • Earn hundreds per year from FITs for 20 years – a typical home in Hertfordshire could expect a total income and savings of about £600 a year.
  • As you’re generating your own electricity, your electricity bill will go down.
  • Earn money from the excess energy you generate – sell it back to the National Grid.

solar feed in tariffsSo if you’ve been thinking about getting solar panels installed but keep putting it off, now is the time to act. As the demand gets higher for solar panels, the amount you can earn from FITs goes down. The current tariff of 12.92p per kWh is available until 30th September. With the cuts the government is making, you should expect this to lower. Make sure you install your solar PV system before 30th September to benefit from the current tariff.

Emily

Emily Rivers is the Customer Experience Manager at Quotatis. She informs customers of the latest developments in a range of products so they can make the best choice for their homes and ensures they get the best out of our service.