Are Solar subsidies causing your home energy bills to rise?

Solar Feed-in Tariffs were introduced in April  2010 and there has been much confusion about where the money comes from to pay for these subsidies.   When we speak to our customers for the first time, we take time to understand what they know about the Feed-in Tariff and how it works.

There have been so many misleading adverts out there claiming ‘the Government will pay you for generating your own electricity’ that we often find we have to re-educate our clients.  I attended a Solar Power UK event last week where one of the guest speakers was from the Department of Energy and Climate Change (DECC) and one of the questions from an installer was about where the money for the Feed-in Tariff comes from so even within the industry there is still confusion.

The Government set policy.  They introduced the scheme and appointed organisations to manage it.  The payments made to people who generate their own electricity comes from you and I through our electricity bills via the climate change levy which you will have seen on your bills. 

I have a Solar PV system on my roof.  I have a separate meter to measure what I’m generating and every quarter I send in my reading.  My energy company then pays me the feed-in tariff.  Each energy company agrees with OFGEM what they’ve paid out in Feed-in Tariff and this then forms part of the climate change levy  on everyone’s bills.  However,  solar alone does not account for all of the climate change levy. 

In 2011 the cost to a householder was less than £2 for the year to support solar subsidies, 0.15% of dual fuel bills.  By 2020, the cost to householders will still be less than £10 per year, on the scale of things a small price to pay to allow the solar industry to continue growing and developing to reduce our reliance on fossil fuels.  Solar power is a clean, safe energy which has the potential to contribute significantly to global energy production but the industry needs to grow in order for the technology to continue to develop.

Rising gas prices mean electricity and gas bills will continue to rise so a Solar PV system will protect home owners from these rising costs for years to come.  If you would like to know more about how a Solar PV system could protect you from rising energy costs, call us for an informal chat on 01525 213103.