Good news for solar customers
The Government has just updated the Feed in Tariff (FIT) rates to take account of inflation. The good news is that FIT payments have risen slightly meaning even sunnier returns for solar customers.
The Feed in Tariff payment (we really wish they had given it a catchier name) is guaranteed for 25 years and is index linked. This means that your payment will rise with inflation so that it always stays the same in real terms. This makes it an unusually attractive form of investment (as does the fact that the payment is tax free for home-owners).
The new tariffs have just been announced for 2011/12 and come into force on 1 April 2011. The full (and rather complicated table) can be found on-line here.
The headline news is that:
- For installations on existing properties below 4kWp (that’s most people’s homes) the price has risen from 41.3p/kWh to 43.3p kWh.
- For installations on existing properties below 10kWp (that’s most people’s homes) the price has risen from 36.1p/kWh to 37.8p kWh.
These pennies may not sound like much but they make a big difference over 25 years.
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