Yesterday there was a further update from DECC on the Feed in Tariff, here's how it will affect domestic installations. Worst Case Scenario: If the Court of Appeal overturn the High Court’s decision the Feed-In Tariff will be set at 21p for all systems of up to 4kwp (approximately 16 solar panels) systems installed and registered after 12th December 2011. Best Case Scenario: If the Court of Appeal reject the appeal the Feed-In Tariff will be set at 43.3p for all systems of up to 4kwp (approximately 16 Solar Panels) installed and registered by 2nd March 2012. Opinion: This is excellent news for homeowners! Whilst nothing can be guaranteed until the decision is made there is a genuine possibility of receiving a windfall of the 43.3p Feed-In Tariff on energy produced by the system for 25 years. This will create a mad rush for installations, but the potential window for action is very small. By acting quickly you will ensure that you are at the front of the queue. Even if the court appeal is successful, the 21p Feed-In Tariff for 25 years still provides an approximate return on investment of 10% (depending on your own circumstances - your supplier will be able to give you a more accurate estimate), not to mention doing your bit for the environment.
DECC announced recently that the tariff rate for solar PV installations below or equal to 4kW in size will not fall below 21p for installations between 12th December 2011 and March 31, 2012. It's therefore time to act now.
At the rate of 21p/kWh solar panels are still a sound investment. Just look at the figures -at this (Feed in Tariff) FIT rate, the potential payback on a £9,999 investment over 25 years would be £24k - much higher than a bank account at an interest rate of 2.84% - which would give £15,209 over the same period.
The best advice at the moment for anyone thinking of installing solar panels is ignore the negative press about FITs and look at the real returns they can provide - and act quickly!