Feed-in tariff changes for inefficient properties

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  • Author Luke Kyte
  • Published April 7, 2012
  • Word count 518

Homes that aren’t energy efficient will see a solar feed-in tariff rate of just 9p/kWh if the installation isn’t completed before April 1. The Government has decided homes that don’t meet at least an Energy Performance Certificate (EPC) rating of level D or above won’t be eligible for the higher rate of 21p.

There are still question marks hanging over the current feed-in tariff rate, which could be 21p/kWh or 43.3p, depending on whether the Government’s Supreme Court appeal is successful.

However, what’s certain is that homeowners and businesses are guaranteed at least the 21p rate if solar panels are installed before April 1.

By leaving it until after this date, you risk having the feed-in tariff slashed to just 21p. Of course, you can install energy efficient measures such as double glazing and loft lagging to bring your property up to scratch, but this could cost thousands of pounds.

Investing in a solar photovoltaic system before this cut-off date would ensure you’re locked onto the higher tariff for at least 25 years. This could bring you a profit of over £18,000.

A spokesperson from the Energy Saving trust said: "Where a domestic property does not meet these energy efficiency requirements, the solar PV [photovoltaic] installation may receive the lower tariff of 9p/kWh."

Meanwhile, the Department of Energy and Climate Change say: "It makes sense that, if someone is putting solar panels on their building, the property is energy efficient too.

"We consulted on the best ways of doing this by linking tariffs to specified minimum energy efficiency requirements and proposed introducing such a requirement from April 1."

Why invest in solar panels?

Reduced energy bills - With the wholesale prices of gas and electricity consistently on the rise, you will avoid this with free solar electricity.

Your system would generate environmentally friendly energy and a 3kW system can cut your electricity bills by 77% every year.

Lock onto the feed-in tariff – The guaranteed tariff rate of 21p/kWh is enough incentive for anyone wanting to generate their own electricity and make a profit. But depending on the Supreme Court’s ruling, installing solar panels before March 3 could see you with the higher 43.3p rate. This could give you £1,400 profit annually.

Low maintenance – Solar panels require little to no maintenance and are known as a ‘fit and forget’ technology. They don’t make a noise when working and all you’ll have to do is ensure trees don’t cast the panels into shadow.

Export to the National Grid – Any excess electricity your system generates can be exported at a set rate of 3.1p/kWh to the National Grid.

There’s also the other option of storing the energy on batteries to use on an overcast day.

Cut your carbon emissions – You can help the environment by producing carbon-free electricity.

You’ll be replacing the fossil fuels of coal, gas and oil, which when burnt release carbon dioxide emissions. This is chiefly responsible for global warming problems.

Visit the allrenewables website for more information and find out how you would benefit from solar panels.

www.allrenewables.co.uk provides all the information you need on environmentally friendly energy sources.

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