How the Feed-In Tariff Cuts Will Affect Sales of Solar Panels
Installers of solar panels are worried about the recent cuts to the feed-in tariff, worried that their potential customers won’t even consider joining the tariff now. This is probably true in the short term, sales of solar panels and installations will drop but I’m guessing that they will pick right back up again.
People who were counting on the 43.3p rate paid for electricity generated from PV solar panels will naturally be disappointed to realize they will now only get 21p. However, after thinking about it, they will realize that getting 21p is really a good deal, especially when the prices of solar panels are going down. Granted, it won’t be the mad rush seen before but the companies who ride out the drop in sales will reap the benefits of less competition when installations pick back up.
The tariffs are payments to anyone who owns a renewable electricity system, with solar panels being the most popular, and most practical choice for the vast majority of UK homeowners to generate renewable electricity with zero carbon emissions. Any UK property owner is eligible, businesses included. Solar panel installers can market the scheme to homeowners, businesses and organizations, giving them a huge potential customer base. Many solar panels installers will survive the reduced feed-in tariffs just fine as they an market the generation of zero-carbon electricity, a product that will only get more popular as the UK governments pledge the greenest government ever.
