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The Fiscal Advantages Of Solar Panels: Can They Last?
Author : Lynn Imhoff
Submitted : 2011-11-15 19:16:32 Word Count : 870 Popularity: 64
Tags: Solar panel installation, Feed in tariffs
In the past 7 days the coalition government, and more especially the Department of Energy and Climate Change have declared that the available Feed in Tariff rates which reward, inter alia, makers of solar electricity will be significantly diminished. Before this announcement customers and solar panel installers were attracted into making the most of this revolutionary and also environmentally friendly energy source by way of the astoundingly profitable rates available: the average house could expect to receive 43p for each unit of solar electricity made together with 3p per unit exported to the national grid. This did mean that the average financial advantages of a property which has a solar panel installation amounted to a number exceeding ?1700 on a yearly basis. With the proposed adjustments, which are being brought in a few months earlier than originally planned, the rates are set to decrease, and many people who had envisioned their installations to be concluded ahead of the new rates kicked in are now experiencing extreme discontent. Consumers and solar panel installers alike are therefore in a condition of distress and shock, since the statement arrived out of nowhere. Numerous legal agreements for installations have been entered into to be carried out before the March deadline, but at this moment, they will all be lost. Customers will feel ripped off and also the solar panel industry will have a significantly harder task on their hands. As the industry employs close to twenty-five,000 individuals based on some reports, the possible repercussions of this decision are exceedingly far reaching.
Reacting to these unbelievable governmental proposals a collection of leading solar PV providers plan to commence court proceedings to obtain an interim injunction, whilst friends of the earth are set to submit an application for judicial review. They both desire not necessarily to stop a reduction in the Feed in Tariff rates, but to quash the decision that the new rates will apply from December of this year as opposed to March of the coming year. This will let them carry on with contracts that have been legally entered into, avoid disappointing thousands of consumers and avoid the danger this sort of rash move could do to solar panel installation companies as well as their employees could be subject to.
Reduced Feed in Tariffs for solar panel installations: it's not all bad news
Whilst it would be difficult to argue that the manner in which the government went about announcing and implementing these proposals has been by any means reasonable, the substance may not be as cataclysmically awful as people first think. Yes the feed in tariff rates have been lowered, and yes the boom time of solar panel installation may well see a small decline, but will it totally stop? The answer to this in my view is a resounding no. The rationale behind reducing the Feed in Tariff rates is the fact that as the industry grows and demand increases, so will the provision of necessary elements to solar panel installations. As a result these components become inexpensive.
Consequently, the return of investment available just before the proposed adjustments come into effect might return in the future as the price associated with solar panel installations reduces proportionately. There might well be several months of lag, but the death of the solar panel industry is not necessarily nigh, whilst the wonderful returns available to customers will remain. Due to this fact although the legal challenges would be a pleasant blessing to the solar panel industry in the event that they succeeded, they just do not spell the end of the line.
Author's Resource Box
The article author works closely with Shropshire centred solar panel installers Solar Days who are skilled in supplying premium quality solar panel installations aiding people and businesses generate profit from the sun.
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