So what is next for solar in the UK? In the analysis below, we will take a look at solar panel returns and payback times after the removal of FIT and consider the impact of the new Smart Export Guarantee at various payment levels. According to the most recent Solar Panel Costs and Returns report , a typical, well sited 4kW solar panel installation in the UK has an estimated return of 6.
With FIT closing on April 1st, those tariff payments will not be available to new entrants. Support under the Feed in Tariff has already fallen over the years from Falling costs and increasing electricity prices have combined such that solar has remained viable with this tiny subsidy.
From April 1st, the Feed in Tariff will close and new solar installations will receive no payments. Importantly, the closure of FIT will mean an end not only to the generation tariff which is a subsidy but also to the Export Tariff. The Export Tariff pays small scale generators for the portion of their electricity that they do not use and that they supply to the grid.
The government has agreed in principle that it is wrong for homeowners to go unpaid for electricity they provide to the grid. It has announced the introduction of the Smart Export Guarantee which will pay homeowners for electricity they export to the grid. It has not however set a level for these payments nor managed to have the scheme in place before it chooses to close FIT.
For at least a short time then, new installations will be without the Feed in Tariff and will receive no payment for electricity they generate for the grid. Here is how the costs and returns compare for an installation in Q1 of receiving the Feed in Tariff and an installation post Feed in Tariff.
Despite this, the government are still choosing to pull the plug. One of the biggest reasons for this is to reallocate the funds. The other reason is that the cost of renewables, such as solar PV, has fallen enough that schemes like this are no longer necessary.
Come spring we can therefore expect to see the UK solar power industry take something of a nosedise, at least for a while.
Ideally, battery storage will improve enough in the next few years that solar becomes a more practical option even without the financial intervention from the government. This means no replacement for the Feed-in Tariff, at least until then. You can read about it here.
No, absolutely not. Check your paperwork to see when this is. If you were to get solar panels installed now, you could still qualify for the Feed-in Tariff and receive 25 years of payments.
For more info on getting solar PV installed, check out our ultimate guide here. Think we missed something? Do you have a different opinion? Comment below to get your voice heard…. Save my name, email, and website in this browser for the next time I comment.
At that rate of income it will take approx 49 years to pay for this installation. Sadly I will never se a Profit. Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website.
These cookies do not store any personal information. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies.
It is mandatory to procure user consent prior to running these cookies on your website. Newsletter Sign-up. However, this will do little to alleviate the lost export value of those who have already purchased solar panels. This would simply not have happened without the Feed-in-Tariff. The call for evidence has itself drawn criticisms from renewables groups however, many of whom think it comes too late.
Optimism does remain for the future of small-scale renewables in the UK particularly solar power. Shortlists
0コメント