Feed in Tariff
As we all know by now the government has decided to go ahead and reduce the feed in tariff (FIT) for photovoltaic cells. The original rate was 43.2 pence per kilowatt hour (KwH) generated. The new rate from April 1st is being reduced to 21p per KwH. generated.
So is it best to walk away with such a significant cut in the FiT? Not necessarily. The cost of photovoltaic panels is falling all the time. Twelve months ago panels for a 4 bedroom detached house might have cost about £15000 but now cost about £10000 and certainly no more than £12000.
Properties in Rossendale
The likely return for a property in Rossendale could still be about £1500 per year. In other words the payback time is broadly the same; about eight years. If you live in the south the return would be even greater. Remember of course that the FiT is index linked so investing in photovoltaic panels continues to be one of the best investments around.