Is there a future for Solar PV?
DECC have announced proposals to the Feed in Tariff scheme that will see the generation tariff for the majority of new residential installations drop from 12.92p/kWh to 1.63p/kWh from 16 January 2016. Whilst this is still only a proposal and will be subject to consultation, it is considered by the industry that this reduction is inevitable. Installations already registered should not be effected.
If you are considering installing solar PV to maximise the return to benefit from the current higher tariffs panels must be installed, commissioned and registered before the reduction comes into force. To find out how much you could earn from a solar PV array please contact Fervo without delay for a FREE survey and estimate.
What will the reduction in the Feed in Tariff mean for solar PV and will it still be worthwhile investing in?
The proposed reduction is not wholly unexpected. Some recent reports have suggested that in the next couple of years solar PV could become a worthwhile investment without any form of subsidy.
In March 2012 the Feed in Tariff dropped by 50%, which many thought was the death knell for solar PV. However since then the cost of installing panels has halved and continues to fall as technology improves. In addition electricity prices have risen by nearly 12% thereby increasing the savings consumers can make by generating and using their own electricity. Consequently solar PV has remained an attractive investment.
It is likely that PV panel prices will continue to fall, although probably at a slower rate. It is more certain that electricity prices will rise in the future. Therefore for those looking to future proof their homes, solar PV will show a return in the medium/longer term, especially for those who consume a lot of electricity. Solar PV will remain worthy of detailed consideration, particularly as part of an integrated renewable installation which includes a heat pump solar.
A petition has been created seeking a full debate in the House of Commons regarding DECC’s approach to the Feed in Tariff and the proposed 87% tariff reduction. Please follow this link to Parliaments Petition web site to add your support.
For a comprehensive review of the options for solar PV and other renewable technologies please do not hesitate to contact Fervo.