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Friday, 28 October 2011

Solar subsidies to be cut by more than half | Environment | guardian.co.uk

Solar subsidies to be cut by more than half | Environment | guardian.co.uk: "Solar subsidies will be dramatically cut by more than half, according to government documents that were prematurely published online and quickly taken down.

The cut will almost double the payback period for householders, the document revealed, meaning someone installing £10-12,000 solar panels will only be in credit after 18 years rather than the current 10.

The official announcement on the slashing of the feed-in tariff rate paid to householders is not expected until next week, according to tweets from the climate change minister, Greg Barker, but the document revealed the rate will be cut from 43.3p per kilowatt hour of solar electricity to just 21p.

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'via Blog this'

1 comment:

Don said...

So this is now confirmed and the current rate ends on the 12th of December.
The government (DECC) have really mismanaged this. They left the Feed In Tariff too high for too long causing excessive demand and numerous companies to start up. DECC have slashed the rate by more than half which will destroy demand, cause companies to fail and create unemployment.
It could have been properly managed by an earlier, smaller, decrease to prevent demand overheating and then further decreases to reflect the decrease in capital cost. 0/10 for DECC.
However there is a future for PV. I was talking to an installer who plans to offer a 4kWp system for £8000 in the new year. This will give a return of up to about 10%, tax free and linked to RPI with the reduced FIT rate. A more attractive investment than the bank can offer!