30 Oct 2011: DNC writes: Congratulations to all who had the courage to go ahead and install PV during the last 2 years. If you are on the bandwagon, your investment is reasonably safe (although government still has the right to decide how index linking goes). Those who have not installed have to go ahead quick, as the Feed in Tariff changes expected for April 2012 may occur earlier, perhaps in December 2011.
If you have a system installed, but haven't yet registered it for FIT, do so very quickly, because there is a dealing coming up.
The Guardian got this scoop off the Energy Saving Trust website, shortly before it disappeared again from the EST website. But the details were mostly confirmed by Greg Barker in the morning news of 29th Oct. The DECC website will show the details from Monday 31st Oct onwards.
http://www.guardian.co.uk/environment/interactive/2011/oct/28/feed-in-tariffs-solarpower
I don't altogether disagree with the policy. Degression was always going to be built in, but it needs to degress faster, due to the fall in the cost of installations. The original assumption was that Energy prices are only ever going to go up, and this has been true. The next assumption is that increasing world demand would balance with falling manufacturing cost keeping installation prices stable - this assumption was wrong, because costs of installations have almost halved in a couple of years due to vastly ramped up Chinese manufacturing, and competition in the installation industry. But most people will find the new rate is a serious discouragement, even if they are well intended to do something for clean energy and safer climate - 43p reducing to 21p will reduce payback to 5-6% (16-20 years), and the resulting cutback in installations will not bring prices down as fast as they have fallen since 2009.
My 4kW installation was over £19K a mere two years ago, and now 4kW is reliably only about £11k, and some installers can beat even that. When I started doing Rushcliffe Solar estimations, we were getting paybacks of 8%-10%, and now prices have fallen so much that it's 12%-16% - this is too high a return, causing people to make rushed decisions for the wrong motives. The minister said that people should also consider the other long term things like improving house insulation and glazing, before rushing to instal electrical generation on inefficient buildings.
Ironically, this decision is going to push PV prices up, as there are increasingly frantic order books, and shoppers can no longer shop around much - they just have to select whoever can fit them in before the new year. Companies who have moved into PV may be considering shifting out of it again. It is a blow for the nascent industry, to be sure.
See also:
http://www.businessgreen.com/bg/news/2120568/feed-tariff-cuts-threaten-kill-solar-pv
http://www.clickgreen.org.uk/news/national-news/122739-consumers-and-industry-react-with-fury-to-leaked-feed-in-tariff-cut-plans.html
If you have a system installed, but haven't yet registered it for FIT, do so very quickly, because there is a dealing coming up.
The Guardian got this scoop off the Energy Saving Trust website, shortly before it disappeared again from the EST website. But the details were mostly confirmed by Greg Barker in the morning news of 29th Oct. The DECC website will show the details from Monday 31st Oct onwards.
http://www.guardian.co.uk/environment/interactive/2011/oct/28/feed-in-tariffs-solarpower
I don't altogether disagree with the policy. Degression was always going to be built in, but it needs to degress faster, due to the fall in the cost of installations. The original assumption was that Energy prices are only ever going to go up, and this has been true. The next assumption is that increasing world demand would balance with falling manufacturing cost keeping installation prices stable - this assumption was wrong, because costs of installations have almost halved in a couple of years due to vastly ramped up Chinese manufacturing, and competition in the installation industry. But most people will find the new rate is a serious discouragement, even if they are well intended to do something for clean energy and safer climate - 43p reducing to 21p will reduce payback to 5-6% (16-20 years), and the resulting cutback in installations will not bring prices down as fast as they have fallen since 2009.
My 4kW installation was over £19K a mere two years ago, and now 4kW is reliably only about £11k, and some installers can beat even that. When I started doing Rushcliffe Solar estimations, we were getting paybacks of 8%-10%, and now prices have fallen so much that it's 12%-16% - this is too high a return, causing people to make rushed decisions for the wrong motives. The minister said that people should also consider the other long term things like improving house insulation and glazing, before rushing to instal electrical generation on inefficient buildings.
Ironically, this decision is going to push PV prices up, as there are increasingly frantic order books, and shoppers can no longer shop around much - they just have to select whoever can fit them in before the new year. Companies who have moved into PV may be considering shifting out of it again. It is a blow for the nascent industry, to be sure.
See also:
http://www.businessgreen.com/bg/news/2120568/feed-tariff-cuts-threaten-kill-solar-pv
http://www.clickgreen.org.uk/news/national-news/122739-consumers-and-industry-react-with-fury-to-leaked-feed-in-tariff-cut-plans.html
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