The Economic Advantages of Solar Panels: Can They Last? | Free Articles Directory – Share Your Knowledge

In the past 7 days the coalition government, and more specifically the Department of Energy and Climate Change have proclaimed that the available Feed in Tariff rates which reward, inter alia, makers of solar electricity will be considerably diminished. Prior to this statement consumers and solar panel installers were drawn into taking advantage of this modern and also environmentally friendly power source by way of the amazingly worthwhile rates being offered: the average house could expect to receive 43p for every unit of solar electricity produced in addition to 3p for every unit exported to the national grid. This did mean that the average economic advantages of a house which has a solar panel installation came to ?1700 each and every year. With the suggested alterations, that are being brought in a few months earlier than originally planned, the rates are set to decrease, and many individuals who had estimated their installations to be concluded before the new rates kicked in are now dealing with intense frustration. Consumers plus solar panel installers alike are therefore in a condition of confusion and shock, as the statement arrived out of nowhere. Numerous legal agreements for installations have already been entered into to be carried out before the March deadline day, yet at this moment, they will all be lost. Customers will feel scammed and the solar panel marketplace will have a considerably tougher job on their hands. Since the industry employs about 25,000 people based on some reports, the likely repercussions of this decision are incredibly significant.

In answer to these shocking governmental proposals a collection of leading solar PV firms plan to begin court proceedings to acquire an interim injunction, whilst friends of the earth are set to request judicial review. Both of them desire not necessarily to prevent a reduction in the Feed in Tariff rates, but to quash the decision that the brand-new rates will apply from December of this year and not March of next year. This will allow them to carry on with agreements that have been legally entered into, avoid disappointing thousands of customers and avoid the risk this kind of rash move could do to solar panel installation companies and their personnel could be subject to.

Reduced Feed in Tariffs for solar panel installations: it’s not all awful news

Whilst it would be tricky to argue that the manner in which the government went about announcing as well as implementing these proposals has been by any means fair, the substance is probably not as cataclysmically terrible as people first think. Yes the feed in tariff rates have been lowered, and yes the boom time of solar panel installation may well see a small decline, but will it totally stop? The answer to this in my opinion is a resounding no. The rationale behind reducing the Feed in Tariff rates is the fact that as the industry grows and demand heightens, so will the availability of necessary elements to solar panel installations. As a consequence these parts become less expensive.

As a result, the return of investment available prior to the suggested adjustments come into effect could very well return in the near future as the price of solar panel installations decreases proportionately. There might well be several months of lag, but the death of the solar panel industry is not nigh, whilst the excellent returns available to consumers will remain. Due to this fact whilst the legal challenges will be a pleasant blessing to the solar panel industry if they succeeded, they don’t really spell the end of the line.

The author operates closely with Shropshire centred solar panel installers Solar Days who specialise in providing high quality solar panel installations assisting people and businesses produce profit from the sun.