In August I wrote a detailed article about sustainability, giving all the renewable energy options available to us. Yesterday the government announced major new proposals to the Feed in Tariffs that will affect the cost effectiveness of PV panel.
Under the proposals, the new tariffs would apply to all new eligible solar PV installations installed on or after 12 December 2011. These installations would receive the current tariff of 43.3p before moving to the lower tariffs, 21p, on 1 April 2012.
Consumers who already receive a FIT will see their existing payments unchanged, and those with an eligibility date on or before 11 December 2011 will receive the current rate.
The table below compares typical income and savings made for an average sized solar PV system in the UK based on the Energy Saving Trust’s website.
| FIT Rates | Total annual earnings and savings with a 2.9kW system |
Simple payback (years) |
| Current – higher tariff 43.3p/kWh | £1,190 | 11 |
| Proposed – lower tariff 21p/kWh | £640 | 20 |
Please note that these proposals are currently under consultation and are therefore not final. However, the Energy Savings Trust recommend customers should use the figures in the consultation if they are planning to install after 12 December 2011.
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