There has been an increase in environmental concerns and the need to conserve it. This has led to the use of much cleaner sources of energy like the sun which are considered green. The prediction of an increase in the energy costs due to increase in fossil fuel costs has also contributed to use of green energy sources. Solar panels are an example of this technology which requires that panels be fixed on the roof tops to absorb the sun’s energy.
There has been a notable drop in the number of UK homes that have been installing solar panels. This started since early August and this can be attributed to the decrease in the rate of subsidies offered by the government. According to some reports and figures, there was an increase in the number of solar panels installers before the first day of August, a deadline that the government gave. Thereafter, there was a big drop.
Compared to 2011, there was about a three-quarters drop in the number of panels installed under the feed- in tariff. Under this scheme, households are paid for generating this kind of energy which is environmentally friendly such as anaerobic digesters, wind turbines, hydroelectric systems. Even with this fall, experts in the solar industry still claim that households can still get a good financial return of about 10% annually from the installation of solar panels.
The length of time that households would get subsidies from the feed in tariff was also reduced to 20 years from 25 years. These changes would however not affect installations before 1st august 2012 but any subsequent installation after that. Installation costs have also since dropped in order to encourage more people to install the panels. The cost of the solar panels has also dropped significantly.
Installation price of the panels as of November 2012 was between 4000 and 8000 pounds, a significant fall in just that year. From this, households would be able to save a lot in that year on electricity bills. The energy bill which predicts an increase in the price of electricity in some years to come has caused more people to install solar panels even though recovery of the investment capital may take about ten years.
The subsidies also depend on the government; a different government may propose different terms concerning this matter. Even with these changes, households can offset the installation costs with the amount saved on energy bills and the earnings from the government subsidies under the tariff. After making the return on investment, the annual income will be worth the process.
Different companies have different charges and hence comparison should be done in order to obtain the best deal that suits your budget.
The average solar panel price in the UK in the year 2012 therefore reduced significantly in order to encourage more people to install them despite the change in the feed- in tariff laws. Again, looking into the future, it is a good investment and households should consider installing them.
Author Bio: Sumaia is a tech blogger and blogging from last 4 years in this niche.