UK’s Solar Panel Industry – From Boom to Doom

Over the past few years the UK’s renewable energy industry has been booming and in the last year we have seen it increase dramatically – This was due to the FIT tariff that the UK Government provides as an incentive to switch to a greener way of living and when we heard that this would be slashed in April 2012, the rush started to ensure that more lucrative FIT tariff was secured in time.

If you haven’t heard those reductions to the FIT tariff came sooner than first imagined and instead of a decrease being applied in April 2012 we seen a proposal released for the cuts to take place this December.

A company remaining optimistic – Solar Panels North East, who said “The FIT change will most probably effect the renewable energy industry, certainly an after effect of the FIT Tariff reduction – But we are set to see a reduction in the cost of Solar Panels, decreasing up front costs”. A fair point and that particular company also suggested that those who are serious about the renewable energy industry will be around for the long term and those who simply jumped on the band wagon to make a quick buck will not.
What’s changed?

Firstly in the UK the more lucrative FIT tariff ensured that you would receive 43p per kWh that your system produced and the new FIT tariff ensures you receive just 21p per kWh, that’s a reduction of more than half!

That FIT change came into action on December 12th at midnight – However those who had their installation complete and their FIT tariff registered before that date are fine and will continue to receive the lucrative 43p per kWh that their system produces. However for those of you who didn’t make that deadline or are looking to have an installation carried out in the future then I am afraid to say that you will receive that less lucrative tariff of just 21p per kWh.
When this information was released by the UK’s Government the solar industry went crazy and manufactures, suppliers and installers aw a huge increase in sales, some selling out leaving the renewable energy with even more problems – People were rushing to have their installations carried out but installers couldn’t find the equipment to complete the installations!

From Boom to Doom

The UK’s renewable energy industry is set to see a decrease in installations and some companies have already announced redundancies. A point renewable energy enthusiasts are making is that our Government are encouraging people to take the leap to greener living yet remove any incentive that would encourage the UK public to do so.

It’s not the end!
Two leading solar panel installation companies have taken their cases to the high court with the hope of having the Solar Panel Fit tariff reviewed – Installers hope the EU may also have an input into the tariff cut.

The futures bright
With other renewable energy incentives set to make an appearance in October 2012, there may still be a future for renewable energy in the UK. Two incentives that solar panel installers are particularly optimistic about are the Green Deal Scheme and the RHI (Renewable Heat Incentive), two fantastic incentives but the Green Deal Scheme looks like it will revolutionise Renewable Energy in the UK.

Renewable Energy enthusiast and regular write at Solar Panels Newcastle