LONDON, UNITED KINGDOM--(Marketwire - May 4, 2012) - Experts in the photovoltaic industry have urged Government Ministers to consider scrapping proposed cuts to the lucrative feed-in tariff scheme.
The 21p/kWh tariff currently connected to photovoltaic solar panels, allows homeowners to make excellent returns whilst generating free electricity, because of the falling price of installations.
The solar industry fears that further cuts to the scheme will take away the opportunity to make a profit with photovoltaic panels. What's important to remember though, is that investing before July 1 will guarantee the top tariff rates for 25 years, no matter if future cuts are made.
Essentially, investing in solar panels before July 1 and you'll:
- Have a system that generates free electricity for more than 25 years
- Receive a guaranteed fixed income for 25 years, with the rate of 21p/kWh
- Earn a return of investment between 10% and 15%
- Add thousands of pounds to your home's value with free energy potential
But, if you delay a photovoltaic installation you lose these benefits, instead:
- Not making a high return on your initial investment
- Receiving a reduced income, with rates dropping more than 25%
- Not adding the high value to your property
David Hunt, Director of Eco Environments, has joined the campaign Cut Don't Kill, in an effort to convince the DECC not to continue with their photovoltaic proposals.
He said: "After this date, the FiT rate will drop dramatically to 15.7p and potentially lower still, which will make a domestic solar PV scheme appealing only to the really green investors rather than those who are coming at it mainly for the eye-watering financial returns."
The Government cuts, which would come into force on July 1, could see the feed-in tariff reduced from 21p to 16.5p or 15.7. Depending on the popularity of solar in the first half of 2012, it could even drop to 13.6p/kWh - crippling potential returns.
Hunt says: "This is the final chance for consumers to secure a fantastic return on investment if they go ahead with a solar PV installation before July 1.
The tariff rates already dropped over 50% on March 3 of this year and Solar Trade Association's chief executive, Paul Barwell, said: "Despite all the reported ups and downs for the solar industry in recent months we want to get the message across to householders that solar is a good investment at current tariff rates."
If you're interested in generating free electricity using a natural energy source, whilst earning a fixed income, you should have photovoltaic panels installed before July 1. To guarantee fantastic returns you must have the panels registered before July or you'll lose the main incentive for installing.
This is a series of guest posts written by Luke Kyte, copywriter for lead generation company Quotatis. Quotatis are Europe's most popular consumer matching service for the home improvement market and offer up to four free photovoltaic solar panel quotes.
For more information visit http://www.allrenewables.co.uk.