A number of Solar PV installers are now offering up to 20% off the Solar Panel installation prices of late 2011, due to recent reductions to the Solar PV Feed-in Tariff (FIT).
Why have there been Solar Panel price cuts?
The price cuts by installers – typically around 15% - are designed to make Solar Panels more affordable, increase the Return on Investment and are in response to the Government's FIT cut.
The FIT cut, which came into effect on 12th December 2011, effectively halved payments from 43.3p to 21p for each unit of electricity generated for Solar Panels under 4kWp. The price cuts ensure that, despite the FIT reduction, Solar PV remains an attractive and profitable investment.
How do the price cuts affect the Return on Investment?
A reduced upfront cost for Solar Panels will now take less time to reclaim, resulting in increased savings and giving an estimated Return on Investment (ROI) between 7.3% and 9.3% for Solar systems between 2kWp and 4kWp in size.
The Solar Panel price cuts mean that the ROI is back to a similar level to when the FIT scheme launched in April 2010 and, in comparison with the ROI of between 6.2% and 7.6% before the price cuts, makes Solar Panels a more affordable and lucrative investment.
The new ROI, as a result of the price cuts, is shown in the table below for Solar systems of 2kWp, 3kWp and 4kWp in size, as well as the annual electricity savings which remain unaffected despite the FIT cut.
* Figures according to the Energy Saving Trust.
Find out what you could earn and save using our online Feed-in Tariff Calculator.
With more Solar installers beginning to cut their prices, it's now more important than ever to make sure that you shop around to get the best price. EnergyLink can do this for you by arranging three free no-obligation surveys from which you can choose the most competitive price.
If you're ready to take advantage of the Solar Panel price cuts and the improved Return on Investment, simply complete the online Application Form.