Inflation increase will fuel PV demand
Mitsubishi Electric has welcomed the announcement of new Government figures for the feed-in-tariff (FIT) for solar installations, which have been revised upwards to account for the increase in the consumer price index, as injecting another welcome boost for the burgeoning Photovoltaic (PV) market in the UK.
“We have already seen a dramatic increase in the number of enquiries since the tariff was introduced last year and this higher rate will help continue to fuel demand,” explains Perry Jackson, Managing Director of the company’s Photovoltaic Department.
Benefits fuel demand
The feed-in-tariff means that anyone who has installed PV equipment not only benefits from reduced electricity bills, through the decrease in the amount they need to draw from the national grid, they also receive a generation tariff on the electricity that they do generate, and they receive a payment for any excess electricity that they sell back to the grid.
The new figures, which came into effect on 1st April this year, see an average increase of between 1.5 – 2 pence per kWh of electricity, depending on the type and size of installation.
The UK PV market is already expanding rapidly as homeowners and businesses take advantage of the FIT programme and Jackson sees the level of interest at shows such as the recent Ecobuild as reflective of market desire.
“We couldn’t believe the level of interest at Ecobuild and we’re already looking at significant growth in sales over the coming year,” he says. “This increase to account for inflation looks certain to help turn customer interest into real projects.”
However, Jackson also urges a note of caution as people rush to install PV systems, asking potential buyers to check every aspect of performance, reliability and longevity before they sign any contracts.