RHI and Solar PV Feed-in Tariff Update
By Trevor Kenwrick - 17/02/2012
New Features, services and RHI products
From today we are pleased to announce our new micro generation renewable energy search feature which now includes the new Renewable Heat Incentive (RHI) systems like heat pumps, solar thermal, biomass and wind turbines.
The introduction of the RHI, a world leading incentive which pays you to generate heat which you use yourself in commercial and domestic applications, means that you can now benefit even more from your investment into renewable technologies. There may be a grant available for technologies where no generation tariff is yet available. However if you choose the grant then a lower amount will be paid for generation tariff when it bevcomes available unless you pay the grant back.
It is expected that will mean that with combined savings and earnings from the new tariffs, you can expect payback for the cost of the system to be below 7-8 years, with guaranteed payments for 20 years.
Tariffs are being introduced individually and are being rolled out in commercial settings to begin with. Check back for updated system prices as our partners add more in the future.
Solar PV Feed-in Tariff Future
As confirmed by the DECC, standard installations will be 21p/kWh for all installations completed after March 3rd 2012. They have also confirmed further cuts will be expected in July, with the future rate depending on how many installations take place between now and then. From March 3rd to March 31st 2012 the rate will be 21p per kWh. Also, from April 1st to June 30th 2012: 21p per kWh if the property holds an energy performance rating of 'D' or higher.
Our new and improved renewable search feature also shows the latest solar pv prices which will still ensure a healthy return with future feed-in tariff prices. Solar panel prices have reduced due to global production although the panels themselves are not the only significant costs involved in the installation.
Government cuts to the solar feed-in tariff have spurred necessary reductions in the overall costs of solar panels installation. This mean you may be able to get payback under 7-8 years and an annualised return of at least 7-10% with the new tariffs.
Feed-in Tariff Court Rulings
Due to the courts ruling that the decision to cut the FIT from 43p/kWh to 21p retrospectively was unlawful, the following government appeal, the second defeat and finally the DECC’s last ditch appeal to the Supreme Court, it’s safe to assume that installations made after the December 12th 2012 deadline should be based on the 21p FIT rate, just in case. If the DECC are granted permission to appeal to the Supreme Court, it will probably take over a year to even be heard.
There is, however, the chance that if your installation is registered before 3 March 2012, you may be lucky, if either the appeal is not granted or is again defeated, you will get the more generous 43p/kWh Feed in Tariff rate, which increases with inflation and fuel prices for 25 years. Many in the industry are asserting that the final government appeal is a way to stop another consumer rush to install before the new deadline and that it is unlikely the government will be successful on their third appeal.
Therefore it’s much safer to buy solar panels under the assumption that the rate of this year is 21p kWh (plus exported electricity) which also will be linked to inflation and future energy price rises to ensure a good return. It will be an even bigger bonus if you are lucky enough to install before March 3rd, as you might then get even greater returns if the DECC’s final appeal fails.
Time to Invest
The previous rate was very high. At the 43.3p rate, a retrofit 4 kWp system costing £11,000 would yield an initial annual return of over 17% in some cases (combined savings/earning £1,787 first year) and potentially returning 552% over 25 years).
The new rate is still a very attractive investment with an initial tax free return of about 9% for the same system at that price (combined savings/earning £1,000 first year) with the possibility of paying back 325% over 25 years. With prices for a 4 kW system falling below £10,000, payback will likely around 7 years, which means returns are still higher than most other investments.
By Trevor Kenwrick - 17/02/2012
New Features, services and RHI products
From today we are pleased to announce our new micro generation renewable energy search feature which now includes the new Renewable Heat Incentive (RHI) systems like heat pumps, solar thermal, biomass and wind turbines.
The introduction of the RHI, a world leading incentive which pays you to generate heat which you use yourself in commercial and domestic applications, means that you can now benefit even more from your investment into renewable technologies. There may be a grant available for technologies where no generation tariff is yet available. However if you choose the grant then a lower amount will be paid for generation tariff when it bevcomes available unless you pay the grant back.
It is expected that will mean that with combined savings and earnings from the new tariffs, you can expect payback for the cost of the system to be below 7-8 years, with guaranteed payments for 20 years.
Tariffs are being introduced individually and are being rolled out in commercial settings to begin with. Check back for updated system prices as our partners add more in the future.
Solar PV Feed-in Tariff Future
As confirmed by the DECC, standard installations will be 21p/kWh for all installations completed after March 3rd 2012. They have also confirmed further cuts will be expected in July, with the future rate depending on how many installations take place between now and then. From March 3rd to March 31st 2012 the rate will be 21p per kWh. Also, from April 1st to June 30th 2012: 21p per kWh if the property holds an energy performance rating of 'D' or higher.
Our new and improved renewable search feature also shows the latest solar pv prices which will still ensure a healthy return with future feed-in tariff prices. Solar panel prices have reduced due to global production although the panels themselves are not the only significant costs involved in the installation.
Government cuts to the solar feed-in tariff have spurred necessary reductions in the overall costs of solar panels installation. This mean you may be able to get payback under 7-8 years and an annualised return of at least 7-10% with the new tariffs.
Feed-in Tariff Court Rulings
Due to the courts ruling that the decision to cut the FIT from 43p/kWh to 21p retrospectively was unlawful, the following government appeal, the second defeat and finally the DECC’s last ditch appeal to the Supreme Court, it’s safe to assume that installations made after the December 12th 2012 deadline should be based on the 21p FIT rate, just in case. If the DECC are granted permission to appeal to the Supreme Court, it will probably take over a year to even be heard.
There is, however, the chance that if your installation is registered before 3 March 2012, you may be lucky, if either the appeal is not granted or is again defeated, you will get the more generous 43p/kWh Feed in Tariff rate, which increases with inflation and fuel prices for 25 years. Many in the industry are asserting that the final government appeal is a way to stop another consumer rush to install before the new deadline and that it is unlikely the government will be successful on their third appeal.
Therefore it’s much safer to buy solar panels under the assumption that the rate of this year is 21p kWh (plus exported electricity) which also will be linked to inflation and future energy price rises to ensure a good return. It will be an even bigger bonus if you are lucky enough to install before March 3rd, as you might then get even greater returns if the DECC’s final appeal fails.
Time to Invest
The previous rate was very high. At the 43.3p rate, a retrofit 4 kWp system costing £11,000 would yield an initial annual return of over 17% in some cases (combined savings/earning £1,787 first year) and potentially returning 552% over 25 years).
The new rate is still a very attractive investment with an initial tax free return of about 9% for the same system at that price (combined savings/earning £1,000 first year) with the possibility of paying back 325% over 25 years. With prices for a 4 kW system falling below £10,000, payback will likely around 7 years, which means returns are still higher than most other investments.
