The UK solar industry has been left reeling from the Government's proposals to slash solar subsidies by more than half. But despite the changes to the feed-in tariff (FiT) scheme, leading online resource Solar Guide is optimistic that the once booming market will be able to weather the storm, boosted, not least, by a reduction in the price of the technology. According to Solar Guide, solar PV prices have come down considerably over the last 12 months, making solar far more affordable than it has ever been before. The news should hopefully help to maintain faith in the renewable technology, despite the recent solar subsidy set back.
For homeowners looking to reduce their energy bills by investing in solar electricity, the average price per kWp of a solar PV system has dropped by 39%. According to figures compiled by Solar Guide, in December 2010 the average price consumers could expect to pay for a solar PV installation was GBP 4,445.95 per kWp. In October 2011, that price dropped by 38.63%, to GBP 3,206.96.(i)
David Holmes, founder of Solar Guide said: "Solar subsidies from the feed-in tariff have made investing in solar panels economically viable for so many people. While the Government's proposal to slash solar subsidies by more than 50% has hit the industry hard, the fact that we've seen solar PV prices dropping by as much as 39% should provide the industry with a much needed boost.
"Our figures really do speak for themselves. While fossil fuel costs are rising solar PV prices are falling. Which means solar is fast becoming more and more affordable. And that's good news, not just for energy consumers but for the economy and the planet, too. So it's a win-win situation all round."
