HBH Solar is strongly advising customers who are considering installing solar panels to act now. This means that installations can be completed before 1st July 2012 when the FIT (feed-in-tariff) is set to fall to somewhere between 13.6p and 16.5p. The current FIT of 21p provides a good rate of return.

HBH Solar offers free quotations, with a spreadsheet showing the estimated returns over the next 25 years.

In summary the new plans are as follows:

From 3rd March 2012 until 1st April 2012 the FIT will remain at 21p per kW of electricity generated. This will be paid for 25 years and is linked to RPI.

From the 1st April 2012 onward there will be a new energy efficiency requirement. If your home achieves an energy efficiency rating of “D” or higher, estimated to include about 50% of homes in the UK, then the FIT remains at 21p. If your home cannot be brought up to the “D” standard then the FIT will be paid at 8.9p.

From 1st July 2012 the tariff will drop to between 13.6p and 16.5p depending on the number of new solar PV installations that are registered between March and April 2012. For those homes not achieving the “D” efficiency rating the rate will fall to 4.7p.

There will be a further drop in the FIT from 1st October 2012 and every six months thereafter.

As can be seen from the changes laid out by the Government, if anyone is considering installing solar PV systems it is strongly advised to act now to get the best return.  Once a system has been installed you remain on the FIT rate that is current at the time of the installation – it will not fall over time, but will rise in line with RPI (Retail Price Index).  The headline FIT rates given above are for new installations only.

A 4kWp system with a FIT of 21p can provide a return of investment of 10% and the good news is that the income from the Feed in Tariff is tax free.

Please call or email us for a free no obligation quotation.

Latest news:
Customers are encouraged to
take advantage of new
3 March 2012 deadline

The Government is contesting a recent High Court ruling that its actions regarding cuts to the Feed-in Tariff were unlawful. It is currently attempting to take the case to the Supreme Court and if it loses, then any residential PV systems under 4kWp registered between 12 December 2011 and 3 March 2012 will receive the higher Feed-in Tariff of 43.3p for the next 25 years.

Our advice to customers is that if you are considering solar panels for your home, then it makes sense to arrange the installation before 3 March so that you will secure the higher rate if the Government’s appeal fails. However, we urge you to act quickly, as the order book is filling and work will be carried out on a ‘first-come-first-served’ basis.

To discuss this further, please call 01325 520430.

Background to the case

On 31 October 2011, the UK Government announced plans to reduce the Feed-in-Tariff rate for Solar PV systems
installed after 12 December 2012 from 43.3p to 21p. This gave only 6 weeks notice of the change and was also
before the end of the Government’s consultation period on this subject.

Friends of the Earth and members of the solar industry took the matter to the High Court which ruled that the
changes to the tariff were “legally flawed”. The Government is now attempting to take the case to the Supreme
Court and if it fails to have the case heard or the verdict goes against it, then the higher rate of 43.3p will apply
to any systems registered between 12 December 2011 and 3 March 2012. If the Government wins its appeal
then the rate for this period will be 21p. The Government is also proposing that the rate of 21p will apply after
3 March 2012.

So, although the result of the appeal may not be decided for several months, there is a chance that if you arrange
an installation before 3 March then you may be able to benefit from the higher rate tariff.

Even under the 21p tariff, it still makes good economic sense to install Solar PV systems. These payments are
tax-free, increase with inflation and are guaranteed for 25 years.