In the wake of recent media coverage over the latest round of Feed-in Tariffs (FiTs) degression, Napit are encouraging long term thinking for installers looking to expand their business to install solar PV.
On 31 October, Ofgem announced the new rates that will be available for solar PV installations from 1 January 2015 as part of the planned degression of the FiTs [1]. The new rates will be 3.5% lower (going from 14.38p/kWh to 13.88p/kWh for example) than the current tariffs and, in response, a number of news reports have urged homeowners and installers to take advantage of the current rates by carrying out installation before the new tariffs come into force [2]. However, these kinds of reports may be putting people off from becoming involved in the scheme in 2015 when in fact, the typical reduction in savings and income generated will only be around £16 a year [3]. Bearing in mind that UK solar PV capacity surpassed 5GW earlier this year [4], it seems unlikely that a £16 a year difference on savings will put people off having solar PV panels installed on their home in 2015, given the popularity of the technology at the moment.
Managing director of Napit Certification, David Cowburn, said: “At Napit, we would urge installers not to be put off by the planned degression in terms of offering solar PV installations. The difference in rates is very small and PV is still very profitable over the 20 year period covered by the tariffs. There is still a fantastic business opportunity for installers who are looking to take a longer term approach to offering solar PV installations.”
References:
1. https://www.ofgem.gov.uk/ofgem-publications/91026/fitpaymentratetableforpublication1january2015pvtariffs.pdf
2. http://www.hvpmag.co.uk/Take-action-ahead-of-solar-PV-FiT-reductions/3402#.VHyCNzGsWRM
3. Under the current rates, if a system is eligible for FiTs it could generate savings and income of around £770 a year (based on a 4kWp solar PV system eligible for a generation tariff of 14.38p/kWh). However, using the Energy Saving Trust’s Solar Energy Check http://www.energysavingtrust.org.uk/scotland/tools-and-calculators/solar-energy-check the same system would only generate savings and income of £16 a year less under the new tariffs that come into force in January (based on a 4kWp solar PV system eligible for a generation tariff of 13.88p/kWh).
4. http://www.solarpowerportal.co.uk/guest_blog/uk_solar_pv_industry_reaches_5gw_installed_capacity_3467