FiT Tariff Cut
The Department of Energy and Climate Change (DECC) announced last week that it plans to cut the Feed-in Tariff (FiT) for solar energy installations in half with effect from 12 December this year.
DECC justify the level of the cut on the basis of the falling cost of manufacturing and installing photovoltaic (PV) solar panels which they estimate at around 30% and the need to keep within the budget for the scheme which they suggest is at risk.
In addition it is proposed that from April 2012 any property wishing to benefit from the scheme will have to meet a minimum energy efficiency threshold.
Industry experts had been anticipating a cut but nothing quite so drastic. Many now fear that the radical changes could result in businesses leaving the fledgling market and job cuts.
In particular, it is likely that the number of firms offering “free solar” (where the solar energy firm agree to install and maintain the PV solar panels at their own cost in return for receiving the FiT Tariff themselves) will dramatically decrease as a result of the decline in the return on investment for such schemes.
The Property Department of Bennett Griffin can provide home owners with cost effective and expert advice on entering into agreements and leases with firms relating to the installation of PV solar panels on their property.
If you have any questions regarding this article or would like further advice or assistance please contact Darren Edwards, Associate Solicitor on 01903 706971 or email@example.com.