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Mon 25 June 2018
The Government announced at the end of August that its consultation on a review of the Feed-in Tariff scheme. The announcement of the cut backs proposed was greater than what the solar energy industry expected and will possibly lead to some uncertainty in the short term.
In summary, due to the cut back in funding, new customers of solar PV energy will now have less payment returns and an approximate guideline for this is set out below for a typical installation.
1st October – 31st December 2015
50 KWp – estimated payback six years.
100 KWp – estimated payback seven years.
250 KWp – estimated payback seven years.
From 1st January 2016
50 KWp – estimated payback nine years.
100 KWp – estimated payback ten years.
250 KWp – estimated payback ten years.
Full funded PV ends from January 2016, therefore, customers wishing to take advantage must have their installations completed before the end of the year.
The proposed changes announced will still benefit high energy users. Although the FIT (Feed in Tariff) is reducing by over 70%, the returns for producers that use more than 50% of the energy they generate, will still see solar as a viable option for the future. The change in reality means that solar becomes a form of electricity generation, rather than an investment return.
It should be remembered that although the installation is relatively quick, the setting up and obtaining relevant permissions take time. Any interested parties, therefore, need to act quickly if they wish to have their installations completed by the end of 2015.
If you require any further information, please do not hesitate to contact your local McCartneys office and we will be pleased to assist you.
Chairman McCartneys Surveying and Planning Department