Facts About the Changes to the FiTS for Solar Panels

Are you confused about the effect of the government’s changes to the FiTS scheme for solar panels and solar PV installations? You’re not alone. The recent court decision and the government’s decision to seek leave to appeal that decision to the Supreme Court have left a great deal of uncertainty about what will happen to those who have (or have had) solar panels installed between 12 December 2011 and 1 March 2012. These are the facts about the changes and how they will affect solar PV installations now and in the future.

If You Were Registered for the Scheme by 11 December 2011

…and your solar PV system is rated for up to 4kWh, you will receive the 43.3p tariff rate for 25 years. The proposed changes do not affect you.

If You Will Be Registered Between 12 December 2011 and 2 March 2012

…and your solar PV system is rated for up to 4kWh, you will receive the 43.3p tariff rate for electricity generated until at least 1 April 2012. Depending on the decision made by the court, your rate may drop to the proposed 21p rate for electricity generated after 1 April 2012 or you may receive the 43.3p rate for the full 25 years.

If You Will Be Registered After 2 March 2012

…and your solar PV system is rated for up to 4kWh, you will be paid the 21p rate for all electricity generated by your solar panels for 25 years. Your home may also need to meet higher efficiency standards in order to qualify for the tariff program.

The government also released a fact sheet about the FiTS changes that include information on the expected return rate for installed solar panels at the lower 21p rate. According to those figures, even at the lower rate, a typical home installation could generate up to £500 annually for 25 years in addition to approximately £190 in electricity savings. The Energy Saving Trust provides a solar energy calculator that can help you pinpoint your projected savings and payments more closely based on your post code.

To summarize for those who are weighing whether to install solar panels at this time:

If your solar panels are installed and become eligible for FiTS before 3 March 2012, there is a possibility that your solar PV system will be eligible for 25 years of payments at the 43.3p rates. That is not a certainty, however. If the government appeals and wins its appeal, your solar PV system will be eligible for the 43.3p rate for electricity generated between 12 December 2011 and at least 1 April 2012. No matter what the outcome, you are guaranteed to receive at least the 21p rate for 25 years as long as your solar panels are accepted as eligible for FiTS.