Some of you may have heard from the national media recently how the PV solar panels incentive scheme, also known as the feed-in tariffs, are to be reduced to new applicants on December 12th this year after a swift decision doing this by the coalition government.
So as the title of this article says “don’t dilly-dally if you want to receive the maximum rate of tariff!”
What is reported, however, are the reasons why the feed-in tariff rate now reduced earlier than planned. The original purpose of the scheme was to help the solar industry grow organically over the years and to reward pioneering homeowners for installing such technology.
The problem came when too many solar companies took advantage of this scheme by giving some eligible homeowners their installations for free, with the solar company reaping in the tariff rewards.
This loophole in the legislation should close as soon as it became apparent what was happening, but unfortunately, this didn’t occur, and the feeding frenzy by free solar panel companies began.
This has proved unsustainable, simply because the scheme was never financially designed for such a ‘gold rush’ stampede, and the funding was not going to homeowners as was intended but to city investors. With so many investment companies cashing in under this banner of free solar panels, the scheme, under such a financial strain, was always doomed to fail. A case of too many cooks spoiling the broth.
Under such pressure, the government had no choice but to reduce the rates of the feed-in tariff to new applicants. The original scheme scheduled in 2013 as part of the natural degradation of the scheme’s design.
A future with solar panels
The good news is that the feed-in tariff is now protected for homeowners to buy their solar panels, as was originally intended. The feed-in tariff will once again help the solar industry grow organically and sustainably.
Stuart Lovatt, the founder of Heat my Home, says “The new improved feed-in tariffs scheme will give the benefits of installing solar panels back to homeowners, rather than city investors. Many more homeowners, even after the reduction in rates, will receive the full benefits including saving on energy bills and quarterly payments back for the electricity your solar panel system produces.
Another benefit of installing solar panels yourself is the increase in property value and the extra saleability of your home if you wish to move in subsequent years, which people who received free solar panels will won’t benefit from.”
The new 15.44p per kWh tariff introduced on the 12th December will see a new dawn for both homeowners and installation companies. A new phoenix will rise from the ashes, enabling the United Kingdom and its homeowners to reduce their dependence on expensive traditional fuels.
Whether you manage to install before the deadline or not, you will find your investment more satisfying as each year goes by -and each energy price rises continue.