Prediction of ‘rush’ for solar panels after appeal rejected

PKF Accountants & Business Advisers has predicted a “rush” to get solar panels installed before the new 3 March deadline following a High Court decision that the government cannot appeal a verdict over its cut to feed-in tariffs, which a judge had ruled was “illegal”.

Nick Shapland, consultant with PKF Financial Planning, said that there will be a rush to get panels installed before the 3 March deadline as it is “difficult to find investments that deliver this sort of return in the current economic climate”.

Today’s ruling means that any Solar PV installations installed, commissioned and registered between 12 December last year and 3 March this year will receive the higher Fits rate of 43.3p for the next 25 years.

Customers who register on or after 3 March will qualify for the higher rate until 1 April, when it will drop to 21p.

Mr Shapland said: “Today’s decision means that home owners and small businesses who act fast may be able to lock in to a solar feed-in tariff for 25 years that will give them an annual tax-free return of around nine per cent on their capital investment in solar panels.”

However, he claimed that those that miss the 3 March deadline could still enjoy returns of around 4.5 per cent on the reduced tariff rate, so “all is not lost if you can’t get the equipment installed in time”.

Mr Shapland said: “There is bound to be a rush to get panels installed before the deadline because you just can’t find investments that deliver this sort of return in the current economic climate.

“As this is a government backed scheme, it ought to be more stable than traditional long term investments that financial advisers can recommend.”