Feed in Tariffs Updates.

UPDATE 2 - 22nd DECEMBER 2011

Solar subsidy changes could deal 'fatal blow' to industry.
 
If the 43.3p tariff is to continue, which due to the consultation delay we now believe will be the case, then as our latest installer reports suggest there will a further installation rush throughout January and February 2012.

You can read more by clicking the link to the BBC News Website:
http://www.bbc.co.uk/news/science-environment-16288267

We at Solar Panel Advisor and our recommended suppliers currently don't believe that the 43.3p rate will extend beyond the end of March 2012. The Government will again look at the FIT's fund allocation and decide to take further punitive measures and reduce the FIT rate still further, possibly down to just 9p in April 2012, although Greg Barker the Minister of State for Energy and Climate Change assurances that the 21p rate will remain are doubtful after the extraordinary events of the past week. There is also some concern in the industry that Panel and Equipment suppliers will look at this as a way to put their prices up again therefore maximising their profits whilst the higher rate is still available.

 
UPDATE 1 - 21st DECEMBER 2011
High Court Judge Rules Solar Feed in Tariff Consultation Legally Flawed.

The High Court has today upheld a legal challenge from Friends of the Earth, Solar Century and Homesun against the government's controversial decision to slash feed-in tariff incentives for solar installations, throwing the proposed changes to the subsidy scheme into chaos. The Judge said the consultation was legally flawed and can be subjected to a judicial review. The Court ruled the government had breached rules governing consultation exercises, when it announced that proposed cuts to feed-in tariff incentives would impact installations completed before the end of the consultation period.

Mr Justice Mitting said ministers were "proposing to make an unlawful decision" and as a result the court would be "amenable to a judicial review". He also noted that the consultation has already had a "significant impact" on the industry in the form of projects being scrapped. The ruling paves the way for a judicial review that could force the government to relaunch the consultation, significantly delaying when the proposed incentives to cuts will come into effect.

You can read about the High Court Judgement by clicking on the link to the BBC News: http://www.bbc.co.uk/news/business-16291768

Solar Panel Advisor and our recommended installers have years of experience in the field of Solar PV and we believe that Solar still represents a great opportunity for consumers to control their spiralling energy costs and continue to receive a tax free, index linked cash sum from the Clean Energy Cash Back Scheme or Feed in Tariff (FITS).

Although the Government plans to reduce the FITS by 52% to 21p per unit (kwh) for small scale domestic installations up to 4kwp, it still offers homeowners an excellent return on their investment of between 7% & 12%.

In the last 12 months system prices have fallen by as much as 40% giving those who installed systems in the summer of 2011 returns of up to 17% in their first year of generation including the savings they have made on their electricity bills and income from the export tariff.

Unfortunately we do believe the FIT at the very generous current rate of 43.3p is unsustainable and from the time the new 21p rate comes into effect there will have been in excess of 150,000+ home installations in the UK.

We think the new proposed rate will be fairer for everyone and eliminates many of those companies wanting to make some quick cash before disappearing over the horizon. The long term future of the solar industry will then be assured for those committed to making renewable energy work in the UK and in encouraging consumers to take control away from the large energy suppliers.

We've looked into the proposed new tariff rate and made some calculations based on average system prices in November 2011 to give you a better idea of the returns you can expect. All the calculations below use the Governments Standard Assessment Proceedure (SAP 2009) for solar pv systems and assumes 50% of the energy you produce is used on site,
50% exported back to the grid and average electricity prices of 14p/kwh.

*all calculations based on an optimal south facing roof with minimal shading and a roof angle between 30 and 45 degrees

TOTAL UK SOLAR PV INSTALLATIONS - 20/02/12:

TOTAL GENERATION IN MW: