Ecofirst response to proposed changes to Solar PV Feed-in Tariff Rates

1^st November 2011

Following the announcement made by the Department for Energy & Climate Change (DECC) on 31^st October 2011 that the Government is planning to make significant reductions in the UK Feed-in Tariff (FIT) for Solar PV, Aidan Morris, Sales & Marketing Director for Yeovil based renewable energy specialists Ecofirst gave the following comment.

The UK Government yesterday announced it intends to make significant reductions to the Feed-in Tariff (FIT) levels for Solar PV systems. Many in the solar industry believe that the proposals are potentially damaging but the Government insists that they are essential to secure a long term future for the industry.

The Ecofirst view on the proposed reductions is as follows:

Whilst the proposals are currently at consultation, we fully expect that they will be introduced without change and come into effect from 12^th December 2011.
The proposed reductions to the FIT rates reflect the fact that the cost of installing a PV system has fallen dramatically in the last year
The new FIT level for sub 4kWp PV systems (21p/kWh) is still sufficient to give homeowners a very attractive rate of return
Unlike many other investments, Feed-in Tariff income is tax free for domestic consumers
Even at the new rates of return installing a solar PV system after the 12^th December 2011 is more attractive than it was when the FIT was first introduced in April 2010
Above inflation increases in the cost of mains electricity will mean owners of Solar PV systems who use the electricity they generate will see their rates of return increase year on year
A well designed and installed Solar PV system will have a life expectancy in excess of 25 years so will generate a clear profit for well over half of its operational life

In conclusion, we would urge customers considering investing in solar PV not to be put off. Even with the lower tariff levels, installing a solar PV system makes economic sense and of course you are also helping to reduce carbon emissions.

In addition, for orders placed between now and the 6th January 2012, Ecofirst will be offering 10% off the price of any standard domestic solar PV installation so to see how you could still benefit from Solar PV call us today on 0845 257 5064 for an estimate and a personalised illustration of the rate of return and expected payback, we think you’ll be pleasantly surprised!

By choosing Ecofirst to design and install your system you can rest assured that you are in safe hands and our expert and friendly staff will be happy to answer any questions you may have.