The answer to this common question depends on whether you’re planning to invest in a solar PV company or wondering whether it’s a good time to install solar panels on your rooftop. According to U.S.-based Bloomberg News, there’s surplus inventory of solar panels and a drop in demand, contributing to further steep price cuts. If you’re planning to buy stock in a company that makes or sells solar panels, that may not be the news your want to hear. If, on the other hand, you’ve been holding back on your decision to install a rooftop solar PV system, lower prices could make your decision a lot easier.
What Lower Prices for Solar Panels Means for You
The most obvious effect of the dropping prices for solar panels and installation of solar PV systems is that you can get some real bargains if you choose to switch to solar energy now. Prices have been dropping significantly for a couple of years, and each price drop has sparked new users into jumping on the solar bandwagon and quite literally hitching their wagons to a star.
The price drops also prompted the government to reconsider the level of their current tariff support for solar panels. Because the cost of installation had dropped so steeply since the FiTS was established, the government said, the tariff was far more generous than planned and had drawn customers into the market much faster than expected.
The rapid adoption rate endangered the tariff program, the government explained, and forced earlier adjustments to the rate than planned. Thanks to the publicity surrounding the tariff adjustment, many people walked away believing that it’s really not profitable to install solar panels any longer.
Nothing could be further from the truth. In fact, the government’s adjustments to the tariff plan include scheduled reviews of the rate and decreases when necessary to keep the returns on new solar PV installations within the expected parameters. Qualifying installations of solar panels are expected to return enough in tariff and savings to completely repay the cost of installation within 7 to 10 years.
However, the tariff payments will continue to be paid for a full 25 years – at the rate originally promised when your solar panels were approved for the programme. Depending on the efficiency of your solar PV system and the amount of electricity it generates, you could conceivably earn £1,000 annually from the FiTS.
If you wait for the prices for solar panels to come down further, however, you risk reducing those payments and your eventual profit.
The profit on tariff payments are in addition to the savings you’ll realize by using electricity generated by solar panels. Keep in mind that those savings will continue even after the FiTs is finished.
If you’re considering solar panels but were hesitant because of the controversy surrounding the tariff rate, consider the whole picture. Solar PV is still one of the best investments you can make with your energy dollars.
It is good to invest solar panels right away coz this is also for the future and for the benefits of all. In this case, you are not only helping yourself in saving electricity, but also doing good for the environment. This is a natural way of saving electricity. It might be expensive, but you can get a positive result in the end.
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