Feed in tariff cuts: Don’t panic!
Feed in tariff cuts: Don’t panic!
15th September 2015

In the latest discussions to be had on renewable energy policies and feed-in tariffs, UK Government have decided to cut the feed-in tariff (FIT) early. That’s despite 87% support in the UK for retaining the tariff. We knew it was coming but not quite so soon – especially since shortly after the election the government said they wanted to unleash “a new solar revolution.”

Our message? Don’t panic.

The changes

If you’ve invested in solar power yourself you’ll know that the FIT has been providing payments to owners of electricity-generating renewable energy technologies since 2010. This, of course, helped many homeowners and business owners make the move to using solar panels, and consequently do their bit for the environment. In fact, rooftop solar panel energy has been spreading far faster in Britain than anyone expected, purely as a result of the scheme.

However, despite a belief that renewable-energy technology owners would be supported by the government for years to come, the government has decided to cut the rates of solar PV to control cost. What’s more, further cuts may be made in 2016. If this secondary cut does go ahead, the FIT rate will be 1.63p per kWh, as opposed to the current 12.92p – so if you’re planning to invest in solar panels, we recommend doing it sooner, in 2015, rather than later. Of course, those who’ve already invested in Solar PV systems needn’t worry. If you’re already registered for the old feed-in tariff rates, you won’t be affected.

Solar: The benefits are still there

Despite these cuts, there’s no real reason why you should turn your back on solar power if you had previously been considering it. The benefits of solar are still there. While one of the major perks may be disappearing, there are still so many reasons why solar power reigns. One, it gives you control over your energy bills – something the Big Six energy companies and the government clearly don’t want to happen. Two, you’re doing something good for the environment, reducing carbon emissions and giving your business an eco-friendly conscience. Three, you’re also ensuring energy security for the next 30 years plus – something only solar allows you to do. And finally, it’s still a great option for your budget – giving excellent returns on investment and allowing flexible financing, so your budgets are protected. In the long-term, this brings even more benefits.

Solar adoption worldwide

What’s more, solar, and other renewable sources of energy are certainly not going to go away. While the USA has recently announced a major increase in renewable energy and solar, the world in general is now spending more and more on building low carbon electric power plants that ones running on fossil fuels. It seems countries all over the world are reaping the benefits of fossil fuel, while the new policies in the UK appear to be going against the grain. No matter what the current thinking in government is, the truth is solar is here to stay – so there’s certainly no need to panic just yet.

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