LEICESTER, UNITED KINGDOM--(Marketwire - Aug. 2, 2012) - On 1st August the solar feed-in tariff in the UK endured yet another round of cuts which saw subsidies fall from 21p per kilowatt hour to just 16p. Although the reduction in tariff levels means homeowners installing solar PV systems will get paid less to generate their own renewable electricity, leading online portal Solar Guide says the technology remains a really good investment and as their solar PV calculator reveals continues to provide attractive returns.
The solar industry has already had to contend with one round of cuts which saw the feed-in tariff rate fall even more dramatically, down to 21p from 43.3p in December 2011. While the feed-in tariff was introduced as a financial incentive designed to encourage homeowners to install solar panels, the cuts were deemed necessary to put the solar subsidy scheme on a more sustainable footing.
While there's no getting away from the fact that the UK solar industry has had a bit of a rough ride, subsidy cuts are an inevitable aspect of feed-in tariff schemes, not just in the UK but worldwide. Solar Guide is urging energy consumers to look beyond the negative press that has surrounded feed-in tariffs and see the bigger picture.
Over the last 12 months the cost to install a solar PV system has fallen considerably. A small 2kWp system will cost in the region of £5,000 while a larger 4kWp system - which would have cost around £13,000 this time last year - will now cost between £7,000 and £8,000 to install.
So solar is now more affordable than it has ever been. But aside from lower solar PV installation costs, there are numerous other benefits to consider:
- You'll have more control over your energy bills and not be so heavily dependent on costly fossil fuels
- A solar PV system is environmentally friendly, doesn't generate green house gases and will help you cut your carbon footprint
- You'll earn 16p/kWh through the Generation Tariff and an additional 4.5p/kWh through the Export Tariff if you export any surplus energy back to the national grid
- You can export electricity back to the national grid for 25 years
And let's not forget the financial benefits of installing solar PV panels either. Solar Guide's solar PV calculator estimates that a 3kWp system which costs a little under £7,000 to install will generate an annual income of £579.79 during the first year and a total profit of £12,599.01 over 20 years. The system has a payback time of 9 years and 7 months.
David Holmes, founder of Solar Guide says: "Our latest figures reflect the latest feed-in tariff cuts and clearly show that solar PV remains a really good investment, providing attractive returns, despite the subsidy reductions.
"It's a buyer's market out there at the moment so there's never been a better time to invest in solar electricity because systems are more affordable compared to what they were 12 or even 6 months ago."
Solar Guide is a leading online resource for solar energy news and reviews and maintains its own database of vetted accredited solar installers in your area. If you are interested in installing solar panels let Solar Guide source up to three free non obligatory quotes on your behalf today.