Act now to beat plans to cut solar energy incentives

Going Solar director Charles Houston
Going Solar director Charles Houston

Farmers and landowners who want to earn the best returns for generating electricity to act now before a government incentive programme is slashed this summer.

A five-point action plan in response to the changes for customers who either want to invest in the green technology or have a roof they are interested in renting out.

The Government is set to radically revise the Feed-in Tariff scheme for solar PV systems that are above 50kWp. The plans include dropping the rate for projects between 250kWp and 5MWp from 30.7p to 8.5p per kWh.

It aims to introduce the new tariffs from August 1 but customers who are connected to the grid by July 31 can still qualify for the current schedule, explains Going Solar director Charles Houston.

"There is still time to beat the deadline but it is important to act now to take advantage of the more generous rates that are available under the existing Feed-in Tariff regime.

"While Going Solar has lobbied hard for roof-mounted, solar PV sites to be spared the guillotine, it now appears the Government is determined to take radical action which could result in the UK having some of the lowest tariff rates in Europe," he adds.

Going Solar’s action plan recommends:

• If you have a site that will generate more than 50kWp, an installation can be carried out quickly and, if there is no grid apparatus upgrade, then connection likewise.

• If you have more than one metered supply, you have the option of doubling your array, for example, into two x 50kWp to achieve 100kWp, to maintain the same level of return.

• Reduce your project to 50kWp.

• Do the sums on a 150kWp array. Locations in southern England may still offer attractive returns especially if you can secure a power purchase agreement on the generated power.

• Write to your MP and express your views or take part in the Department of Energy and Climate Change consultations. Further information is available at www.decc.gov.uk.

Other changes to the tariffs for solar installations of less than 50kWp are also under review but any revisions are not expected to come into effect before March 31, 2012. "So, if you are contemplating a smaller scheme, you should still act now to avoid any nasty surprises next year," says Charles.