Solar Panels Registered Before August 1st 2012 Will Be Over 23% More Profitable
Author: David Thomas
Published: Monday, 18 June 2012
With another cut to the feed-in tariff due on August 1, our advice is move now. You have until then to benefit from a 21pkW rate – and a possible 10% ROI – for 25 years.
On August 1st 2012 the solar PV feed-in tariff will drop once again, from 21pkW to 16pkW. This 23% drop represents a deadline: although after the deadline you’ll still be able to earn a competitive ROI from solar, you’re looking at a far richer payback before the deadline that could be worth upwards of £8k.
As well as the tariff rate dropping from 21p to 16p, from August it will apply for just 20 years – reduced from 25. Five years less means that not only will you lose 23% of the tariff rate, but about the same percentage will be lopped off the length of your deal. One quarter less profit. One quarter less time.
You may be wondering where all the good news has gone in the world. Well, you still have until August to reap a possible 10% payback. And a 10% payback is more than 3 times the rate of most building societies. If you have the roofspace – 8m2 per kW – and are keen on harvesting your own clean energy, the money is there for you. Solar photovoltaics (PV) power half of Germany very happily. After a 2 day installation your house will be significantly more valuable and less costly to run.
Export rate is a distraction
The Eco Experts urge you not to pay attention to news that Government is increasing the export rate. This increase is bound to cause confusion. Solar PV is simply not worth it for the export alone so don’t be tripped up. For many, by the time they realise that the increase in export rate means very little in actual terms, August will have come and their opportunity for the 21p 10% ROI will have gone sailing by.
The Green Deal
One more excellent reason to plump for solar PV now rather than later is the much talked about Green Deal. Currently solar PV tariffs are capped if you have an EPC (Energy Performance Certificate) rating of D or below.
The Green Deal is a way to increase your EPC rating at no up-front cost. The bottom line is that in combination, a feed-in tariff and a Green Deal can be cash-lucrative, save you much money, and increase the value of your home – all at the same time.