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Location :: Press Releases » PR » Solar PV Panels Online Comments on Feed In Tariff Changes


Solar PV Panels Online Comments on Feed In Tariff Changes

posted on: November 8th, 2011
Solar PV Panels Online, a network of solar panel suppliers and installers in the UK, have commented on the Government’s plans to slash the solar Feed-in Tariff (FIT), saying that the industry is still full of opportunities for renewable energy companies and their customers.

Introduced in 2008 as a replacement for the awarding of solar panel grants, the Feed-in Tariff is a way for solar panel users to earn money on the electricity they produce. Money is earned on the gross amount of electricity produced, although the user can opt to use what they generate or export it to the National Grid. However, the Government has announced that the amount of money earned for generating electricity is to be reduced from 43.3p per kilowatt to 21p.

Solar PV Panels Online Sales Director Andy Royle believes that this reduction is not as drastic as it first seems. He said: “The news the FIT has been cut is not ideal, but much of the subsequent reaction and talk of an industry ‘decimated’ is misplaced and scaremongering. Homeowners and solar installers should not be disappointed because there are still many rewarding aspects of using solar panels. For example, there are benefits such as tax-free income from FIT payments, and the creation of free electricity which will keep bills down considerably.”

Andy also explained that, up to now, people had been lucky to receive such a high FIT rate. He continued: ““The new tariff will bring the UK in line with subsidy levels in Germany. If we’re honest with ourselves we know that the FIT rates were probably too high to begin with. I believe 21p will work because the market will re-align itself and those with strong business models and good suppliers will flourish. Realistically, 43.3p was never sustainable.”

Despite the proposed cut, the Green Deal, which is set to take effect next year, will allow homeowners to receive subsidies to install sustainable energy products such as solar PV panels.