Solar Panel prices reduced by up to 20%
Monday 9 January 2012
A number of Solar PV installers have reduced their Solar Panel prices by up to 20%, following the Government imposed Solar PV Feed-in Tariff (FIT) cut, to make an investment into Solar Panels more profitable and viable.
The FIT cut took effect from 12th December 2011; reducing payments for units of electricity generated from 43.3p to 21p for Solar systems up to 4kWp in size. Despite strong opposition from the Solar Industry, who argued that the cuts would lead to job losses, a Commons debate ruled in favour of the Government’s aim to make the Solar Industry more sustainable.
Undeterred, Solar and Green Groups challenged the ruling on the grounds that the Feed-in Tariff cut shouldn’t have been allowed to be implemented 11 days before the consultation end date of 23rd December 2011. High Court judge Mr Justice Mitting agreed, stating that it was unlawful, and upheld the legal challenge.
The Government’s counter appeal will now be heard by the Court of Appeal on Friday 13th January 2012, when a definitive verdict is expected on the FIT rate.
The ongoing court battle between the Government and the Solar Industry, coupled with the uncertainty over the FIT rate, resulted in only 812 Solar systems being installed between 12th and 18th December, as revealed by the Department of Energy and Climate Change. This pales in comparison to the 9000 systems installed per day in the week leading up to 12th December 2011, before the new FIT rate came into effect.
Faced with a decreasing number of installations and potential consumer uncertainty over the financial gains of Solar Panels, some installers have responded by cutting Solar prices – typically by around 15% - to make Solar Panels a more attractive investment opportunity.
A reduced upfront cost for Solar Panels will take less time to reclaim, through FIT payments, resulting in increased savings and a lucrative Return on Investment between 7.3% and 9.3% for Solar systems between 2kWp and 4kWp in size. This is a similar ROI to when the Solar Panel scheme launched in April 2010.
As the cost of Solar Panel prices decrease, the Return on Investment typically increases.
For example, using a 4kWp Solar system, the upfront cost is now around 18% less due to the price cuts and will give an estimated ROI of 9.3%. This works out at a 1.7% greater return than prior to the price cuts, which have made Solar Panels a more affordable and appealing investment. Apply Online now to take advantage of the Solar Panel price cuts and increased ROI.
It is also possible to earn a greater Return on Investment by fitting a larger Solar system.
As more Solar Panel installers begin to cut their prices, it’s crucial to get the best deal. EnergyLink can do this for you by arranging three no-obligation surveys from which you can choose the best deal.
To find out how much you could earn and save, try the online FIT calculator.