No doubt you may have heard recently in the news that the Tories are out to fulfil their election pledges, one of which means BIG changes to the way renewable energy projects are funded!
Current Feed in Tariff (0-4kW) = 12.92p Next Cut scheduled for October 2015 = 12.47p
It was only a week ago the Government were hinting on television shows that they were planning a radical shake up of solar PV subsidies, fears were again elevated when the DECC (Department of Energy & Climate Change) released a report in which it stated the they felt the Feed in Tariff could survive a drastic cut down to as little as 5p p/kWh.
One week on and all has been revealed…
Fortunately in life; things rarely turn out as bad as you had feared. HOWEVER… 2015 will see the BIGGEST CUT to the Feed in Tariff since 2012!
The cuts made this year are more than the cuts in the previous 3 years combined. They are as follows: 3.5% cut was made in Jan 2015 – 3.5% cut was made in Apr 2015 – 3.5% cut was made in Jul 2015 and now yet another 3.5% cut is due in October 2015.
That is a cut of over 13.3% in 2015 – compared with just 3.5% cut seen in the previous 3 years.
The graph above shows how the cost of installation has gradually come down over the years as the number of installations has increased (economies of scale).
Also you will notice how in most cases when there is a planned drop in the Feed in Tariff the month before sees a heavy increase in installs.
UK Solar PV Installation Heatmap
The average number of installs per month is increasing each month despite the falling value of the Feed in Tariff which begs the question “Why are people waiting?”.
Is it the cost of installation?
Is it lack of knowledge about solar panels?
Is it people do no like solar panels?
Is it that people do not trust the Feed in Tariff scheme?
Is it that people are just unaware of how much the Feed in Tariff is worth to them?
What about YOU? What is the reason you have waited so long to get in on the Feed in Tariff? and if you are already onboard why did you wait as long as you did?
Please comment below with your answer, and remember:SHARING IS CARING!
The biggest cuts have been felt by small scale commercial systems between 50kW – 5MW. Funding for such systems will be completely removed from April 2016!
The door is closing on renewable energy subsidies, once in you are paid for 20 years whatever happens but if you are not yet onboard then you are seeing your possible returns slipping away as each month passes you by.
If you would like to increase your knowledge of Solar Panels and the Feed in Tariff then we have that covered. Check out this short video clip and if you like look simply click the link in the video to instantly download a copy.