Good news for UK solar – last year saw it set a brand-new precedent by meeting the deployment target set by the Government for the first time ever since the degression scheme was introduced in 2012.

In fact, solar did more than simply meet the 100-megawatt target, it smashed it – with a massive 124MW of solar PV deployed in the last quarter of 2014. This surge in deployment triggered the UK’s first ever ‘degression through growth’ on April 1st; as opposed to the usual automatic tariff cut, which occurs every nine months.

And this solar success means the feed-in tariff (FIT) is set to fall a further 3.5 per cent at the end of this month. As of July 1st, any new domestic solar PV installation 4kW and smaller will be subject to a reduced FIT rate of 12.92p; as opposed to the current rate of 13.39p per unit. And solar PV systems between 4kW and 10kW will see their FIT drop from the current 12.31p to 11.71p per unit, post June 30th.

Systems between 10kW and 50kW will remain at the current rate of 11.71p.

Each time there’s a degression in the FIT there tends to be a rush to install before the deadline, which makes a great selling point for installers – indeed, our installation diary for June is now completely full.

However, while it’s obviously nicer to get the higher rate, the FIT reduction has not rendered solar PV significantly less beneficial to householders by any means.

In cash terms, a 3.5 per cent cut equates to roughly £15 per year less for a 4kW domestic system – that’s around £1.25 per month. And this degression is designed to reduce the FIT in line with the ever-decreasing cost of solar technolgy.

Experts claim the continued fall in the cost of panels means the average size of PV installations are growing – and so are the returns. So, although households will see a negligible reduction in their return through the FIT after June 30th, solar PV still makes exceptionally good financial sense and continues to be as attractive an investment as ever.

To find out more about the benefits of solar PV and how the feed-in tariff works, click on the link here.

If you’re currently exploring the possibilities of solar PV and would like to find out more, or would like to arrange a visit from one of our surveyors, for a free, no-obligation quote, call us on 01452 731088, or email info@roxonelectrical.co.uk