Government Solar FIT Cuts – Update
Previously we discussed the effects of the government’s decision to cut the solar FIT (feed in tariff) rates to investors and individuals investing in solar panels. A lot has happened since last year and we thought we would update you on the current FIT situation.
I’m sure many of you are aware that there has been opposition from many within the industry since the government’s announcement and they have been involved in a legal battle. On the 21st of December these cuts were declared as unlawful. The challenge was made by Solarcentury, Homesun and Friends of the Earth. The high court ruling now means by law anyone registering for FIT scheme will now be able to receive the current 43.3p rate for the full 25 years.
However the Government also launched an appeal on the 4th January 2012. They want to change this decision and move back the date to the 12th December 2011. The Department for Energy & Climate Change also have halved the FIT for anyone installing after the 3rd March 2012.
From the 1st of April 2012 to qualify for the FIT you will also have to produce an energy performance certificate of grade D or higher. It is believed that half of all properties already meet this standard.
There are further proposals to halve subsidies again in April 2013. The plan is to slash the FIT cuts again in July 2012 by another 20%. Then the tariff would drop in October 2012 and then finally in April 2013. This obviously depends on the current sign up rate; if too many people install solar panels they may introduce these cuts earlier.
See here for the latest info: