Reduction in Feed-in-Tariff - Is Solar PV Still a Good Investment?

The government announced on the 31st October 2011 that the current rates for the Feed-in-Tariff (FiT) scheme were to be reduced from the 12th December 2011.

The FiT scheme was introduced by the government in April 2010 and was set up to accelerate the take up of renewable electric technologies.

Since the introduction of the scheme the take up of solar PV has far exceeded the expectations of the government and the Department of Energy Climate Change (DECC) and they reacted by reducing the FiT rate.

The reduction in the FiT rates has accelerated the reduction in the costs of solar PV equipment, which means installing solar PV equipment can still produce a good return on investment (ROI), despite the reduction in the FiT tariff.

Calculations by ATASS Energy based on the government's proposed new tariff of 21p/kW/hr (which is the rate for domestic installations below 4kWp) in conjunction with the prices of the solar panels being reduced, show that a ROI of 8% and potentially higher is achievable. This will give great encouragement to customers considering the purchasing of a solar PV system.

Since the government's announcement Solarcentury, HomeSun and Friends of the Earth have won a high court case against the government, which concluded that the reduction in the FIT rates as from the 12th December was deemed 'unlawful'.

Please contact a Customer Adviser at ATASS Energy should you wish to enquire about purchasing a solar PV system or are interested in a 'free solar' installation.