Solar Blog

Government in move to boost solar PV for homes and small businesses

The Government have outlined proposals to shore up support for smaller developments of solar panel installations. The news comes amid concerns that a reduction in the tariff could stall the take up of solar PV across the country. Under the proposals, financial support will be protected for installations of below 50kW, empowering homes and communities to continue invest in the technology. A reduction in the rate of Feed In Tariffs (FIT) to larger projects, also ensures the allowed subsidy will not get diverted to finance private organisations.

Most households have an average output of 2.5kW, where the FIT rates are presently set at between 36 and 41 p/Kwh. As such, the income received pays for the installation over an average period of 10 years, whilst a significant additional income could be generated after this. By maintaining this level to smaller projects, it is hoped that the take up of small scale solar PV will continue at the impressive rate it presently enjoys.

The announcement will be seen as welcome news by both the industry, and SMEs, and families looking for the best approach to improve their green credentials.

However, as constant reviews of the FIT scheme are planned, the existing tariffs cannot be guaranteed. Presently, the plans are only to reduce the amounts paid for larger installations but, with similar schemes across Europe seeing their tariffs reduced, smaller projects could be affected in due course. Whilst the announcement is certainly good news, those wanting to make the most of the benefits on offer, are likely to be contacting their nearest solar panel company at the earliest opportunity.