Quite rightly, the Government continually monitors the cost of electricity to the consumer, so during the Tory/LibDem coalition period they planned to cut the Feed-in-Tariff (FiT) payable to households with solar PV installations on their roofs to zero in September 2019. Solar This date has now been changed to 31st March 2019.
But that's not all. The new plan put forward by Claire Perry is to stop paying the "export tariff" as well on the same date.
Just to explain - at the moment the owner of a new household installation is payed 3.93p /kWh as Feed-in-Tariff (subsidy) and 5.24p /kWh as Export Tariff (value of surplus unused electricity fed back into the grid). Very roughly,and depending upon the size of the installation and how much the sun shines, this means the owner receives about £350 /annum total payment from Ofgen.
The implication here is that with the loss of the Export Tariff the electricity fed back by householders into the grid will be available free of charge to the big six electricity supply companies who can then make a profit on it when they sell it on to consumers.
As can be imagined this is causing devastation to the solar industry just at a time when encouragement should be maximised to produce clean energy.
The most difficult bit to understand is that according to government figures this action will save the consumer £1 a year.
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