Don’t worry if you missed the deadline because solar power remains a very attractive way to earn money and reduce your carbon footprint.
The new tariff should also help to weed out fly-by-night firms and shows that the Government is serious about a sustainable, long-term renewable energy policy.
The initial tariff was so lucrative it was almost a no-brainer for people to go for it. There was a huge growth in the industry. Companies were springing up all over the place and quite frankly a lot of them out of industries with very little experience and knowledge of solar.
What you ended up with were some very poor companies. The reduction in the tariff will sift out a large number of these businesses and leave the stronger experts and specialists in the market place.
Payments to homeowners who install solar panels to generate electricity changed on August 1. The feed in tariff will is now 16p per KW hour which reflects the falling costs of solar panels.
The length of the tariff payments was reduced from 25 to 20 years, although the export tariff – the amount consumers get for selling electricity back to the national grid – rose from 3.2p to 4.5p per KW hour.
That should give a healthy rate of return of at least six per cent – much more than you will get by putting your money in the bank.