DECC has announced changes to the feed-in tariff for solar PV which will give some clarity for the future:
- The next tariff reduction has been delayed until 1st August, giving wavering householders another month to install and qualify for the current tariff of 21p/unit. Installers have been offering discounts to stimulate householders to make up their minds after the uncertainty of the last six months, eg Joju solar.
- From 1st August the Feed-in tariff will go down to 16p/unit and the export tariff will go up to 4.5p/unit. This will still give householders a 6% return on their investments, it is claimed by DECC. The period of the scheme will be reduced from 25 years to 20 years.
- Future reductions will be 3.5% per quarter, but will be increased or delayed depending on uptake.
Solar installers are breathing a sigh of relief as they were expecting a bigger cut. At last they will be able to offer some clarity to their customers about the financial returns on solar systems.