EmilyThe Feed-in Tariff scheme is facing an 87% cut after the government published its quarterly review yesterday.
The Department for Energy and Climate Change (DECC) announced that the Feed-in Tariff scheme (FITs), which pays homeowners for the electricity they generate and export from their solar panels, will decrease to a rate of 1.63p/kWh. The current tariff is 12.92p/kWh for a 4kW system, but the new rate includes systems up to 10kW.
The cuts will take effect on 1st January 2016, meaning that anyone that waits to install solar panels until after this date will miss out on approximately £400 a year. The government also want to impose default degression each quarter, which would stop payments for most domestic solar PV systems by 1st January 2019. This is a disaster for householders wanting to install solar panels in the future.
James Court, Head of Policy and External Affairs at the Renewable Energy Association, said that the cuts to FITs are
phenomenally damaging and short sighted.
He went on to say that
87% is beyond the worst fears of many of our members, it is hard to see how homeowners or businesses could see solar as an attractive option for the foreseeable future following these disproportionate cuts.
If you want to take advantage of the Feed-in Tariff, you must act now. Stocks are expected to deplete very quickly as householders rush to get the higher rate of FITs before the price fall on 1st October and the dramatic cut from next year. Move fast and you’ll still reap the benefits from solar panels:
- Earn up to £700 per year, guaranteed for 20 years
- Reduce your electricity bill by producing your own
- Lower your carbon footprint by using renewable energy to power your home
Nathan
