Last week the Government announced their decision to postpone the new Feed-in Tariffs cut, confirming that the cuts to solar incentives will happen in August 2012, a month later than originally planned.
From 1st of August, the new Feed-in Tariffs will drop from 21p/kWh to 16p/kWh, and will continue going down every three months, depending on the market. On the contrary, the Export Tariff will be increased, going from 3.2p to 4.5p per kW hour.
The Government defends these cuts have to be done to reflect the lower costs of installing solar panels, and maintains that new FITs will give a return of the 6% for a typical solar panels installation. Climate Minister Greg Barker said “the sector has been through a difficult time, adjusting to the reality of sharply falling costs, but the reforms we are introducing today provide a strong, sustainable foundation for growth for the solar sector”, providing the industry with ‘transparency, longevity and certainty.’