Feed-in-Tariff,a silver lining?
Recent government announcement about the future of the Feed in Tariff has caused uncertainty in the region.
Last week, the government announced a cut in the Feed in Tariff for solar PV installations. The feed-in tariff was announced in March 2010 as a payback incentive for those wishing to do their bit for the environment and their bank balance by installing solar PV on their roofs. Originally, the incentive was guaranteed until April 2012, but the government have now fast-tracked the cut, meaning that systems installed after 12th December 2012 will have the higher rate FiT until April 2012, and will then be put on the 21p tariff for the remainder of the 25 year contract.
This couldn't have come at a worse time for West Cornwall. The area suffers from the worst fuel poverty in the South West and projects aimed at installing PV systems in communities to provide an income for local people have had to be put on hold, if not cancelled. One such project is the solar array at St. Piran's Hall in Goldsithney. Plans for local ethical installer, the Renewable Energy Co-operative, to install a PV system to give free electricity to the hall and provide a Feed-in Tariff income to local residents, have now been cancelled due to the cuts. The Renewable Energy Co-operative (R-ECO), who provide training and employment for more than 16 local people, will have to make considerable cutbacks in the new year. They have been put under considerable pressure in the short term to deliver pv systems before the cut-off date of 12th December.
However, despite all the negative publicity, solar PV prices are continuing to fall and we estimate an even bigger drop in prices over the next few months. This, coupled with the new FiT rates make PV systems a sound investment. Natasha Diop, R-ECO, says “We must remember that here in West Cornwall, we have cleaner air and the sunlight is much stronger than elsewhere in the country, meaning that conditions are perfect for solar. You will still get a better return on our investment than any bank could give you, and you will also be doing your bit to tackle climate change”.
