THE Department of Energy and Climate Change (DECC) introduced newregulations in May to put the Feed-in Tariffs (FiT) scheme on a more predictable and sustainable footing for householders, businesses and the solar industry.

Following consultation with industry and consumers, the Government is introducing a range of changes to the FiT scheme with effect from August 1.

The tariff for a small domestic solar installation will be 16p per kilowatt hour, down from 21p, and will decrease on a threemonthly basis thereafter, with pauses if the market slows down. All tariffs will continue to be index-linked in line with the Retail Price Index and the export tariff will be increased from 3.2p to 4.5p to better reflect the real value of electricity exported to the grid.

Householders who have been thinking about investing in solar energy are encouraged to sign up before the August 1 deadline to obtain the current 21p rate and a return of investment (ROI) of ten per cent.

The new tariffs should give a ROI of more than six per cent for most typical installations and is still a good investment, and householders should be reassured the new tariffs will still provide more attractive returns than can be found elsewhere today.

The industry has been very successful in bringing solar technology costs down swiftly over the last two years and the improved scheme will reflect this trend.

n Article by Wessex Renewable Energy, wessexgroup.co.uk.