The solar feed in tariff has been at the centre of many people now having their own solar panel system fitted to their property.
One of the latest examples are the solar panels fitted to Birmingham council homes as part of the country’s largest solar panel project. The investment into solar panels is estimated to save council house owners as some total of £200,000 a year in electricity bills.
Although plenty of people have had the opportunity to have solar panels fitted along with the top rate of tariff, it is now apparent that the highest rated tariff was not sustainable long term.
As a lower rate of tariff is about to be introduced, interest in solar panel installation may fall as a consequence.
In April 2010, the price per installed what for a solar panel system, was around £3.05 – £3.20 per Watt. Under Birminghams ‘buy for good’ scheme, the price is around £1.70 – £2.20.
In a recession hit time, the above scheme also gave 92 people employment, with 27 trainees.
The scheme hopes to eventually help 2000 families with fuel poverty.
The above example shows that when implemented correctly, the solar feed in tariff works.
The initial high rate of tariff was probably a government incentive which basically lasted far too long. However, the interest in solar technology needs to be maintained, as it will further provide work for all the jobs created during the scheme and to ultimately bring down the price of solar panels.
Financial models for a solar panel system have been proven to be very strong, especially if all the electricity produced is consumed on site. This is the main beneficial factor of solar panels in any case, the added tariff incentive was really to make sure solar panels were a no-brainer option.
As time passes we will see solar panels reducing cost dramatically as new ways of production are thought up and more efficient solar panels are created.
If you still have interest in investing into solar panels, the solar feed in tariff can be still utilised, just at a reduced tariff rate.
The solar industry has also geared up to supply the people interested in investing into the tariff.
If the plug was pulled on the tariff completely, and the knock-on effect would be profound to all those working in the solar industry.
The solar tariff scheme has helped a lot of businesses thrive in an economic downturn, giving valuable jobs and as a consequence, providing people with the way to produce their own electrical energy.
Although the government have been overturned again over the deadline date of the highest rate of tariff, it is still likely that the highest rate tariff will end around April 2012.
Solar installation companies are at a bit of the crossroads, as the first news about the tariff reduction caused panic, where solar companies thought they would have to stop trading.
The other alternative is that they could capitalise on all the new installations in the coming months, until the tariff is further reduced.
Even if solar installation companies do trying to capitalise on this mini installations as possible, they need to still have a long-term plan to survive.
Really, the ultimate decision is in the hands of the government, but we just hope that the scheme will be long-term, for everyone’s benefit.
The author wished to recommend as a fantastic Solar Panels installation company, Solar Direct Savings.co.uk. Many years personal experience in solar installations and working with the Solar feed in Tariff.