Cuts in Solar FiTs Could Be Good News For Solar Thermal
Worcester, Bosch, a market leader in domestic heating and hot water systems believes the solar PV subsidy cuts could be good news for the solar thermal industry.
Last week the solar PV industry was forced to face the inevitable – that the Government was to slash the rates of solar subsidies. However, the industry has been shocked by the level to which they have been cut – by over 50%.
From 12 December, for generating electricity from a solar PV system, the rate is set to be dropped to 21p per kilowatt hour, down from the current rate of 43.3p per kilowatt hour, to just 21p.
However, whilst the solar industry and investors remain up in arms about the Government’s plans to introduce subsidy cuts, Worcester, Bosch says the announcement isn’t all doom and gloom and the cuts to the feed-in tariff (Fit) rates could in fact give a welcome boost to sales of solar water heating systems.
Neil Schofield, the firm’s Head of External and Governmental Affairs says the reduction could end up having “a positive effect on solar thermal sales which remain a very viable and cost-effective option for householders to reduce their energy bills.”
“What’s more the decision to link the tariff to the energy performance rating of a property will ensure that public money is not being wasted on properties which are inadequately insulated and you can’t argue with that,” he added, reaping praise on the proposals which include properties having to achieve an Energy Performance Certificate (EPC) rating of Level C and above.
According to Solar Trade Association figures, while solar PV remains increasingly popular, last year their members have reported a reduction of 75% or more in their solar thermal sales, helped not least by uncertainty over the Renewable Heat Incentive (RHI) scheme and the success of the feed-in tariff.