“Here comes the sun”

“Despite a 50% decrease in the feed in tariff relating to solar electricity, we have not seen the end of the opportunity for domestic producers of solar energy” says Ray Morris of Shropshire based solar power installation company MiPower Ltd.

So the gravy train of solar subsidies has finally come to an end, or so they would have us believe. There has been a reduction in UK feed in tariff subsidies but the same is also true in Germany for example where a 15% percent reduction has recently been announced.

Almost all of us would agree that it the right thing to do to support green renewable energy. However, it is a fact that the payback period for your investment in domestic solar panels will now take longer than previously once the December deadline passes.

It is important to remember that just 2 years ago when feed in tariffs were first announced the payback on a typical domestic installation was 10 or more years. The rush to install solar now is not just sudden, it has been a gradual one caused by a lowering of panel and associated costs and the growing attraction of the possible return on your investment.
Instead of the current 5-6 year payback period, this will inevitably rise to nearer to 10 years in the short term once the December the 12th deadline passes or maybe it isn’t quite as slow as that.

Interested in a Solar Power Installation?

When you look at the possible forecasts for the rise in electricity prices as suggested by The Department for Energy and Climate Change in their report of July 2010, this predicts that the impact on consumer electricity bills will add 33% by 2020, and 26% by 2015 to domestic bills just through the impact of meeting carbon reduction targets. Add to this the likely rise in oil prices, (the same report has referred to a figure of $150 per barrel for oil in 2020 although it stops short of making a firm prediction at this level against today’s figure of circa $110 per barrel) on top of the figures above and you can quickly see that feed in tariff’s at the revised rates offer a sound and green ethical investment.

Other predictions were made in May of this year by Centrica – the parent company of British Gas – who warned the wholesale price of gas and electricity next winter will be 25 per cent higher than last year. Energy firms pay for their fuel months in advance and the price paid for fuel by households has yet to reflect the hike. If Centrica increases prices, other companies will follow suit.

Deutsche Bank’s May forecast indicates that the average dual-fuel bill could rise by 30 per cent to 50 per cent in the next four years – to between £1,300 and £1,600.

Here therefore, consumers have to look to the future and the impact these rises will make toward their energy bills. Each rise will lower the payback period. Furthermore the feed in tariff offers another advantage to the solar panel owner and that is in looking at how your household uses energy and whether you can make lifestyle adjustments whereby you use your own generated power during the daytime when panels are producing at their maximum output.

The impending market realignment will see off the inferior installers and get rich quick merchants and the consumer will be able to take advantage of a reduction in installation prices partly brought about by lower raw material costs of the silicone used in panel production.

Solar Power Installers Shropshire

Shropshire based Company, MiPower Ltd, founded at the start of the UK solar market, will continue to offer highly competitive installation prices for quality solar installations. Further announcements as to how you can take advantage of solar power will appear in the news section of the MiPower website as we evolve new and innovative ideas. MiPower only utilise the best quality panels and inverters, after all, the last thing you need is a problem 15 years down the line.

Talk to MiPower for free advice and quotations on 01743 719906, or email us, to discover how you can make the sun shine on your power bills for now and forever more.