The new Feed-in-Tariff rate of 21 pence per kWh is valid from today the 3rd of March 2012. The government will pay these rates through the utility companies for 25 years, and the rate is tax-free and inflation adjusted. CompareMySolar uses the new rate of 21 pence per kWh in all calculations.
The new rate is only valid for systems up to 4 kWp (larger systems receive only 16.8 pence) and will require your house to comply with certain energy efficiency requirements if you install solar panels after April 2012 (see Energy Efficiency Requirements post).
In early 2012, many solar installers have been responding with price drops, because they want to keep installing. Prices for solar panels and complete systems have never been so low and even with the lower FiT of 21 pence, investing in solar will give you a great financial return. For example a 4kWp system that used to cost 15.000 pounds early 2011 now sells for around half that price. The energy saving trust has got more extensive documentation about the new Feed-in-Tariff. We will blog about: