The FiT rate which is paid out for rooftop solar has been reduced to the new rate of 4.39p/kWh, which will be paid out from February.
Technically, the FiT system will be paused for three weeks and restarted on 8 February, according to the STA, but its adds that householders can continue to invest in solar as normal in the interim and will “simply have to wait a few weeks before their payments commence”.
For householders, the new rates mean a return on investment of around 5%, the STA claims – a tax free, inflation-linked return, which it says are higher than any rates currently on offer for savings accounts, where interest rates are at a record low. A competitively priced solar installation is likely to be paid back – the breakeven point on the investment – in around 13 years and it is possible for householders to improve payback further through intelligent use of their system.
“Let’s be clear; solar is still a good investment for householders and an essential investment for the planet. Costs have come down so fast solar is much more affordable today than five years ago – around half the price of a new car. There has never been a greater need to go solar because acting on climate change is more urgent than ever. Solar will save on your energy bills, and potentially add value to your home,” said Paul Barwell, the STA’s chief executive.
“The changes to the solar feed-in tariff are significant but solar technology is exceptionally reliable and attractive and the solar industry has proved itself to be the best energy sector in the world at bringing down costs and developing innovative products. We know that solar power is the UK’s most popular energy technology and we are confident that, while solar may be less financially attractive than previously, we remain on track and determined to deliver a solar revolution that will benefit everybody.”