Rise in Feed-in Tariff brings a little spring sunshine
It’s been a gloomy couple of weeks for some. Not only has ‘worse-off Wednesday’ finally hit, but inflation figures have continued to rise.
It’s not all bad news, though. Those with index-linked incomes are, to some degree, insulated from the rising cost of living. This includes people who have installed solar PV panels and who are earning from the Government’s Feed-in Tariff scheme. April saw the payment for solar PV systems (up to 4kW in size) go up in line with inflation from 41.3p to 43.3p per kWh.
That may not sound like much, and, to be fair, the difference over the course of the year is more likely to be measured in tens of pounds than in hundreds for people with domestic solar PV installations. However, it’s worth bearing two things in mind:
1. Rising energy prices affect inflation figures. Those earning from Feed-in Tariffs can derive some satisfaction from the fact that rising energy bills overall are actually helping to boost their own income.
2. Interest rates are very low. High inflation and low interest rates are bad news for savers, as money in the bank actually loses value over time. While it may cost a little to invest in solar energy, at least the income derived from that investment will keep pace with inflation for the next 25 years.
Finally, I must declare my own interest here, since my business involves installing solar PV panels. Nevertheless, the effects of this increase are very real and very welcome for those who have decided to take advantage of what solar power has to offer.