The Fiscal Advantages of Solar Panels: Can They Last?

In the past couple of days the coalition government, and more in particular the Department of Energy and Climate Change have stated that the available Feed in Tariff rates which reward, inter alia, producers of solar electricity will be dramatically reduced. Before this announcement consumers and solar panel installers had been attracted into making the most of this innovative as well as green energy source through the amazingly lucrative rates on offer: a standard house could expect to collect 43p for each unit of solar electricity made together with 3p for each unit exported to the national grid. This did mean that the average fiscal benefits of a residence with a solar panel installation amounted close to ?1700 every year. With the proposed modifications, which are being introduced in many months prior to originally planned, the rates are going to decrease, and numerous people that had anticipated their installations to be completed ahead of the new rates kicked in are right now confronting serious discontent. Consumers along with solar panel installers alike therefore are in a state of frustration and shock, since the announcement came up out of nowhere. Countless agreements for installations have been entered into to be finished before the March deadline day, but now, they will all be lost. Consumers will certainly feel robbed and the solar panel market will now have a significantly harder task on their hands. As the industry employs close to twenty five,000 individuals according to a number of reports, the possible consequences of this decision are exceedingly far reaching.

In reply to these astonishing governmental plans a collection of leading solar PV providers plan to commence legal proceedings to obtain an interim injunction, whilst friends of the earth are set to make an application for judicial review. They both hope not necessarily to stop a reduction in the Feed in Tariff rates, but to quash the decision that the brand new rates will apply from December of this year instead of March of the coming year. This will permit them to proceed with contracts that were legally entered into, avoid disappointing thousands of consumers and avoid the peril this type of rash move might do to solar panel installation businesses and their workers could be subject to.

Reduced Feed in Tariffs for solar panel installations: it’s not all terrible news

Whilst it would be difficult to argue that the way in which the government has gone about announcing as well as implementing these proposals has been by any means reasonable, the substance may not be as cataclysmically bad as people first think. Yes the feed in tariff rates have been lessened, and yes the boom time of solar panel installation might well see a small decline, but will it completely stop? The answer to this in my view is really a resounding no. The rationale behind changing the Feed in Tariff rates is the fact that as the industry expands and demand improves, so will the supply of important components to solar panel installations. Consequently these elements become more affordable.

Because of this, the return of investment available before the proposed changes come into effect may perhaps return in the future because the cost regarding solar panel installations reduces proportionately. There could well be a few months of lag, but the death of the solar panel industry is certainly not nigh, whilst the wonderful returns available to customers will remain. As a result although the legal challenges would be a welcome blessing to the solar panel industry in the event that they succeeded, they just don’t spell the end of the line.

The article author works directly with Shropshire based solar panel installers Solar Days who are experts in delivering premium quality solar panel installations helping people and businesses bring in profit from the sun.

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