What is changing?
Since April 2010, energy suppliers have been required by the government to pay a tariff to anyone producing electricity from small scale low carbon technologies (such as home solar panels). Owners of these systems have a guarenteed inflation linked return for every kilowatt of electricity they produce for 25 years.
However, following an 8 week consultation period, the government has announced that any solar systems installed with an effective date after 1st April 2012 will receive a new lower tariff, down from 43.3p per kWh to 21p per kwh for the next 25 years.
How will the change to Feed in tariffs affect me if I install solar PV?
Installed 12th of December 2011 to 31st March 2012
Systems with an effective date between the 12th of December 2011 and the 31st March 2012 will receive a Feed in tariff of 43.3p/KWh for the period of the 12th of December 2011 to the 31st March 2012.
Installed 1st April 2012 onwards
Systems with an effective date on the 1st of April, or after, will receive a Feed in tariff of 21p/KWh* for the next 25 years.
These changes will affect the level of return on investment that can be gained from solar, whilst the new feed in tariffs are lower they still represent a great opportunity to generate free electricity and see a return on investment of up to 5%.
What is the benefit of installing a solar system before 1st April 2012?
Although every solar installation is different, here are some estimates of how much you could save by installing a solar system before 1st April 2012. Remember that every day you delay this amount will go down!
| System Size | Current Tariff for period 12 Dec 2011 to 31 Mar 2012 | Proposed Tariff for period 12 Dec 2011 to 31 Mar 2012 | Difference |
|---|---|---|---|
| 4kW | £418.26 | £202.85 | £215.41 |
| 3kW | £322.06 | £156.19 | £165.87 |
| 2.5kW | £270.82 | £131.34 | £139.48 |
| 2kW | £209.13 | £101.43 | £107.70 |
What do we mean by effective date?
Any new solar system has to be registered with your electricity provider in order to receive the feed in tariff. The effective date is the date on which a system is registered with an electricity provider.
I am thinking of having solar PV installed what should I do?
ACT NOW to ensure that you earn the best return on investment possible. Complete the contact formon the right of this page and one of our helpful and friendly staff will contact you. Alternatively call our local rate number 0845 2256001.
*Feed In Tariffs are adjusted in line with the Retail Price Index on the 1st of April each year. ++ This information was correct at the time of publishing 1/11/11