The UK feed in tariff for Solar PV Panels (FIT’s)was implemented to provide a cash based incentive for property owners to move to renewable energy and has been running successfully for a number of years, however, it has been regularly reduced for new installations under the format known as “degression” and the latest proposed changes are due to be effective from January 2016.
The reduction in the income from the FIT’s has been balanced by the significant reduction in the cost of installing solar panels – as an example a 4kW system that would have cost over £20,000 in 2009 can now be found for less than a third of that price.
Considering the longer term outlook for “making a mint” from solar panels it is one that is not going to last much longer as the degression will eventually eliminate the income stream. But that is not to say that installing solar panels is not worthwhile as even without the tariff income, you would still save on your electricity bills.
According to the Energy Savings Trust, a South Facing 4 kilowatt system could create £540 per year in tariff income and save £127 per year on your bills (assuming £100 per month current electricity bill) and £12,000 over the lifetime of the tariff.
This information is courtesy of www.energysavingtrust.org.uk