Feed-in Tariff guaranteed until April 2012

On Thursday 19th January 2012, the Department of Energy and Climate Change (DECC) presented a Written Ministerial Statement to Parliament confirming the Solar PV Feed-in Tariff (FIT) rate until April 2012.

The Statement established that Solar Panel installations completed between 12th December 2011 and 31st March 2012 will receive the FIT rate of 21p for 25 years, guaranteed and linked to inflation.

It is the third time that the Government has confirmed the guaranteed FIT rate of 21p until April, following similar announcements on Friday 6th January 2012 and Wednesday 18th January 2012.

What reassurance does DECC's Statement give?

DECC’s Statement provides clarity to installers who may have been unsure, during the legal battle between the Solar Industry and DECC, which FIT rate to inform customers, and for customers unsure what level of FIT payment they would receive.

It also answers some Solar Industry fears about further reductions to the FIT rate for Solar installations completed before April, with the assurance that it won’t fall below 21p.

Could the FIT rate change before April?

If the Court of Appeal rules in favour of the Solar Industry, the previous FIT rate of 43.3p will be reinstated for installations completed between 12th December 2011 and 3rd March 2012.

If DECC are successful in court, the FIT rate will be 21p for all installations completed between 12th December 2011 and 31st March 2012 as DECC originally intended.

Crucially, this means that all Solar Panels installed before April 2012 are guaranteed to receive the FIT rate of at least 21p for 25 years. This is regardless of the outcome of the court case and any future reductions to the FIT rate, which would only apply to new installations.

FIT payments also move in line with inflation, which has only failed to increase once in the past 52 years. The table below shows an estimation of this over the 25 year FIT period, as well as the impressive Return on Investment, savings, and earnings for a 4kWp Solar system:

FIT Year FIT Rate
(p per kWh)
FIT Earnings
& Savings
(£ per year)
Cumulative Earnings
& Savings
(£ per year)
Return on
Investment (%)
1 0.21   £967.46   £1,968.26   8.80
5 0.26 £1,175.96   £5,183.11 10.69
10 0.33 £1,500.85 £11,331.29 13.64
15 0.42 £1,915.51 £18,636.81 17.41
20 0.53 £2,444.73 £27,333.21 22.22
25 0.63 £3,120.16 £37,704.80 28.37


Find out what type of Return on Investment you could get by using the Feed-in Tariff Calculator.

Is now a good time to invest in Solar Panels?

Absolutely, yes! A number of Solar PV Installers are now offering up to 20% off the cost of Solar Panels in comparison with the prices of late 2011. Combined with DECC’s guarantee of a minimum FIT rate of 21p, and to avoid potential future FIT cuts after April, now is an excellent time to invest.

If you’re ready to take advantage of the Solar Panel price cuts and guaranteed FIT rate of at least 21p, EnergyLink can arrange for you to receive three free no-obligation surveys from which you can choose the most competitive price. Simply complete the short online Application Form to get started.

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