FIT Update: The Current Position

On Wednesday 25th January 2012 the DECC lost their appeal against the tariff rates and have since announced their intention for further appeal. The court of appeal haven’t yet granted the DECC permission for further appeal but they are seeking direct permission from the Supreme Court in which to do so.

Should they be granted leave to appeal and become successful it could take up to a year before the final outcome is known. This appeal could also mean that they will be able to legislate to apply new tariff from the 12th December reference date.

Oh the uncertainty.

This uncertainty of not being able to guarantee either tariff rate (reduced rate at 21p kwh or last year’s higher rate of 43.3p kwh) on installations made between 12 December 2011 and 3rd March 2012, means that installers cannot correctly promote their services and homeowners are less confident about installing panels when they are less certain about the return of investment.

Delaying the outcome of the case could cause further damage to the industry due to the negative hype they’re continuing to create. The government are very keen not to give away 43.3p kwh as they simply cannot afford it so are trying their best to put off other buyers & installers off solar for selfish reasons until the next consultation on 3rd March 2012.

In an announcement by the DECC and in their formal response to question 1 of the consultation they have however confirmed that tariff rates will be no lower than 21p kwh from 1st April 2012 even if they government win their appeal.

Homeowners should be jumping at the chance to get involved as they may potentially be eligible to receive the higher rate of 43.3p kWh should the government lose their appeal. They have already lost twice so it might just be worth the gamble.

imagesource@solarpowerportal