Government officials have released a consultation document detailing a reduction in the Feed in Tariff for all small scale low carbon technologies that generate household electricity. This change in policy will have a drastic impact on the solar PV industry.
The Department for Energy and Climate Change (DECC) released a declaration on Monday 31st Oct outlining the proposed changes. It states that the current tariff is unsustainable following the rapid growth in the industry, the reduction in installation costs and rising electricity prices.
It is proposed that homeowners wanting to access the current Feed in Tariff ‘ring fenced’ for 25 years, have until December 12th 2011 to get their solar PV system installed and registered. Under the new guide lines the generation payment drops from 43.3p per unit to 21p per unit.
Although this may turn off many homeowners in the short term, Climate Change and Energy Minister Greg Barker feels that the new model is more realistic. He explained:
‘My priority is to put the solar industry on a firm footing so that it can remain a successful and prosperous part of the green economy, and so that it doesn’t fall victim to boom and bust. The plummeting costs of solar mean we’ve got no option but to act so that we stay within budget and not threaten the whole viability of the FITs scheme.’*
Yorkshire Energy Services’ solar installers - YES Renewables have already started making preparations for this change in events. The organisation was recently selected to partner with Barclays Finance to help householders spread the costs of solar PV installations. YES Renewables can now offer their customers intrest free and low intrest loans for solar PV systems that can be paid for in affordable installments.
With the proposed cut off date approaching, now is the ideal time to book a survey and get a system installed to access the higher Feed in Tariff. For a free no obligation survey and quote, contact YES Renewables on 0800 052 7496 today or enquire through the YES Renewables website.