If you were thinking of leading a life of leisure paid for by profits from the solar panels on your roof – think again!
The Government has announced that it will cut the feed in tariff – the amount owners of “domestic” solar panels get from the electricity companies – from 43.3 p per kilowatt hour to just 21p. This will effectively double the time it takes for a solar system to pay back its investment costs from around 7 to 15 years, longer for more expensive systems.
If you have just ordered a system, start putting the pressure on your installer.
Anyone whose system has been commissioned by December 12- just 5 weeks away- will receive the old tariff, but installations registered after this date will receive the new lower tariff.
The background to this announcement is that prices of solar panels have dropped dramatically over the last few months. At the same time ordinary, non-solar electricity users are beginning to bite against the huge subsidies given for “alternative” power generation , which are effectively paid from everyone’s electricity bills.
The Government seems more motivated by concerns about the amount of money made by the solar panel companies than by the stupidity of subsidising alternative power generation, which still requires conventional power generation for back up when the sun isn’t shining or the wind isn’t blowing.
Wind farms, solar panels, acres of biomass fuel, all require subsidies from….yes! You and me!