Where Next For Government Solar Power Feed-In Tariffs?

With all the recent confusing coverage about the various legal challenges to the Government’s proposed changes to the feed-in tariff for home-generated solar power, anyone who’s considering installing solar panels could be forgiven for wondering if it’s still going to be a worthwhile investment.

Well, here’s a quick run-down of all the background facts and the current state of play, to enable you to plan your solar installation project with all the latest information at your fingertips...

Late last year, the UK Government announced proposals to reduce the feed-in tariff by 50% for all domestic solar power installations commissioned after 12 December 2011. This proposal swiftly prompted a legal challenge in the High Court, initiated by Friends of the Earth and several solar power installation companies. The High Court ruled in favour of the legal challenge, declaring the 12 December effective date for the tariff change to be unlawful.

The Government then challenged the High Court’s decision in the Court of Appeal, but again they were unsuccessful on the grounds that the necessary consultation period on the scheme proposal didn’t end until 23 December 2011, and the Government didn’t have the power to apply the retrospective reduction to the feed-in tariff, backdated to 12 December.

Currently, the Government is still in the process of launching a further appeal against this second ruling, and the matter has been referred to the Supreme Court. But in the meantime, they have also lodged some changes to the feed-in tariff in the Houses of Parliament that will officially reduce the tariffs available for new solar power installations after 02 March 2012 anyway.

This somewhat confusing situation is set to last for at least a few more weeks, as the Supreme Court has 28 days in which to make their final ruling on the matter.

 So, exactly who is affected by this, and what are the possible outcomes?

 Firstly, it’s important to clarify that the only solar PV installations where the feed-in tariff is currently in question, are those that have a commissioning date between 12 December 2011 and 02 March 2012.

 That’s because any installations already completed before 12 December 2011 will still qualify for the original feed-in tariff of 43.3p per kilowatt hour for the full 25 years. For installations between 03-31 March 2012, system owners will receive 43.3p per kilowatt hour from the commissioning date until 31 March, and 21p per kilowatt hour thereafter. And for installations commissioned from 01 April onwards, the new feed-in tariff of 21p per kilowatt hour will apply throughout the payment validity period.

Source: http://www.energysavingtrust.org.uk

 So exactly how will the forthcoming Supreme Court decision affect systems commissioned between 12 December 2011 – 02 March 2012?

 If the appeal is successful, system owners will be subject to the proposed changes, receiving 43.3p per kWh until 31 March, and 21p per kWh after that. But if the appeal were to be rejected again, the 43.3p per kWh feed-in tariff could remain in place for the full 25 years.

So, the message is that if you’re considering installing a domestic solar system, there’s no reason to delay – if your system is commissioned before 02 March 2012, and the Government’s Supreme Court appeal is unsuccessful, you could still earn 43.3p for every kilowatt hour of solar power you sell back to the National Grid for the next 25 years.

Also, with solar panel costs reduced in 2012 vs. 2011 it’s a great time to get in touch and discover more. Many solar installs are receiving a 20% price reduction (vs. last year) so contact Sovereign Solar Power today to discuss your requirements on 01733 551329, email us at info@sovereignsolarpower.co.uk or visit our website at www.sovereignsolarpower.co.uk