Monday, 31 October 2011

Important Changes to FiT for Domestic Solar Installations.

Well, we all knew it was too good to last. 

Energy minister Greg Barker has confirmed the recent speculation that the feed-in tariff, which pays people to generate electricity, will be halved from April 2012 for anyone who installs and registers after the cut-off date.

It may be a little early for that smug feeling if you've  had a system installed recently and have a 'Microgeneration Certification Scheme' certificate.The current FiT rate of 43.3p may well be reduced retrospectively as the government consultation on the matter ends on 23 December. Further details on    Read article:

I've always been concerned regarding the economics of paying householders over 40p per kWh, despite the energy companies charging their customers on average 15p per kWh.  The old adage, "If it seems too good to be true, it's probably not"....seems to apply. 
Nevertheless, this, and the previous government has encouraged consumers to invest in alternative methods of producing electricity, whilst reducing the UK's carbon footprint. 
It would be reduce electoral confidence and set all sorts of precedents if the current 100,000 + installations have their "25 year guaranteed payments" reduced by half. I personally installed my system on the economics of an 8 year payback period, I suspect that the take-up from home-owners would have been significantly reduced if the projected rate of 21p had been offered. 

The PV installers are also 'cashing in', with this change of cut off date. A customer was negotiating a 4Kw system listed at £12,000 on 2 Nov. only to find a price increase to £15,000 on 3 Nov. Now that's market forces!

Fingers and toes crossed until the 23rd December. Lets not wake up on Christmas morning and remember the following.

"Darkness is cheap, and Scrooge liked it."

A Christmas Carol. Charles Dickens.



"I started out with nothing, I still have most of it."


  1. Great graphic Icarus! Highly appropriate as far as installers and those that were planning an installation before April 2012 are concerned. Some have now decided not to pursue going solar, others are in a dilemma, installers very much feel stabbed in the back. Anyone interested in showing the government the error they are making (as far as small domestic installations are concerned) can respond to the consultation here:
    [url] [/url]

    However at lesat that paper states: "Consumers who already receive a FIT will see their existing payments unchanged, and those with an eligibility date on or before 11 December 2011 will receive the current rate." It's contract law and so you and I and others that fortunately already have installations can at least sleep easier. But it does not reassure us that many installers risk going out of business.

  2. @Chrisso
    Hi Chrisso. I'd like to believe the government will leave the current contract for existing installation alone.
    Unfortunately, successive administrations have amended legislation to the detriment of the those who thought it was written in stone. Consider all those people who assumed that they would be retiring at 65 and will now be working until they're 70 or beyond.
    I also suspect a significant number of people who were part of the "British Empire" assumed that they had the right to settle in the UK. Loopholes can be closed and governments seem quite happy to utilise retrospective legislation to make it legal.

    Check out:

  3. Very interesting points. Thanks!

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  4. @Anonymous

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