DECC have today confirmed the booming solar industries worst fears by publishing their “consultation” on feed in tariff cuts for PV systems.
The table above shows the proposed deep cuts will apply to all new installations completed after the 12th December 2011. This gives customers and installers just 6 weeks to complete any existing contracts at the current rates.What’s more although the proposals are “out for consultation” the changes in tariff levels come into effect before the consultation is due to close on the 23rd December.
David Houston, Director at Chester based PV FIT Ltd, says: “Today’s announcement confirms our worst fears and makes a mockery of the coalitions claims to be behind renewables and their intention to ween people off centralised produced power”.
The proposed domestic tariff levels, which are apparently “out to consultation”, mean a 4kW pv system on an optimum South facing roof will now take 11.3 years to payback, up from 6.5 years under current tariff levels.
“We accept that costs of PV equipment have come down in the 18 months since the FITs were introduces in April 2010. These savings however only translate to a 30% saving on a fully installed system. A knee-jerk 50% cut to FITs is disproportionate and will severely affect investor confidence in a sector which has already seen large PV systems disappear over night due to similar draconian cuts earlier this year” says Houston.
The full details of the comprehensive review for PV FITs consultation can be found on DECC’s website. Other proposed changes include:
Introduce new multi-installation tariff rates for aggregated solar PV schemes i.e. where a single individual or organisation owns or receives FIT payments from more than one PV installation, located on different sites.
a new energy efficiency requirement for FITs for solar PV (see section 3 of consultation for more detail). The new requirement would apply to all new solar PV installations with an eligibility date on or after 1 April 2012 which are attached to or wired to provide electricity to a building.
Many are predicting a solar gold-rush up to the government’s imposed cut-off point of 12th December, after which solar firms will be left to reassess their offerings. There are likely to be severe job cuts in an industry which has created over 20,000 new jobs in the past year.
David Houston advised, “PV FIT currently have spare capacity in the lead up to the 12th December. To avoid disappointment you will need to book your installation ASAP – if you haven’t already had a quote we can survey over the phone in 10 minutes and will email a quote same day”.
In the lead up to 12th December PV FIT are offering full installation at following prices:
Call today for your free solar PV quotation on 0344 567 9032 or fill in our free solar survey.