Confused energy policy not FIT for purpose, say consumers
With the feed-in-tariff (FIT) rate about to drop on the 1st August for the second time in a row, consumer confidence in the Government's flagship solar scheme is waning, warns uSwitch.com. Almost three in ten people (28%) blame the Government's confused energy policy for the latest reduction. And, while more than six in ten consumers (64%) still agree with the FIT scheme, new research shows that the constant chopping and changing has left people confused and has even put some off installing solar panels on their homes.
As at the 1st August, the current FIT rate will drop from 21p/kWh to 16p/kWh. But such is the confusion that just four in ten (40%) of those with solar already installed can correctly identify the current 21p rate. Those who don't have solar power are even further in the dark - less than two in ten (19%) know what the current rate is.
As well as causing confusion, the rate changes are a turn off for consumers. Four in ten (40%) of those who don't have solar installed have been put off the idea by the latest round of changes - 18% to such an extent that they now no longer consider getting solar panels installed as an option.
And this feeling seems to be deep-rooted. Of those consumers who disagree with the FIT scheme, almost half (47%) lay the blame for this on the constantly shifting goalposts. Two in ten (20%) disagree with the scheme because it is too complicated. More tellingly, this rises to a quarter (25%) amongst those who already have solar panels - arguably the people who have most felt the impact of the Government's indecision.
Today, almost 250,000 domestic properties in the UK have solar panels fitted. But confusion created by the constant changes to the FIT scheme could deter many more from joining them. Over a quarter (27%) of those who don't have solar panels say it's because they don't trust the Government to maintain the FIT scheme - 15% don't understand the scheme while 17% are concerned that the rate will have dropped by the time their panels are installed.
Kevin Sears, energy efficiency expert at uSwitch.com, says: "Solar energy is looking like a real success story for consumers, with many getting solar panels installed in direct response to the high cost of household energy. However, the benefits are being overlooked or undersold because of the focus on the feed-in-tariff scheme and the constantly changing goalposts - this is putting many consumers off.
"I would urge the Government to show support to solar and to the many consumers who would like this opportunity to reduce their energy bills. The Government can do this by showing absolute clarity, determination, vision and drive so that people can start to feel complete confidence in making this investment.
"Although the FIT rate will be dropping to 16p on the 1st August, this still represents a healthy return on investment, especially as the installation cost of solar has dropped from £10,000 to around £7,000. And of course, the fact is that installing solar will cut your household energy bills and protect you from the impact of future price rises. It's important that this avenue is kept open as over three quarters (78%) of those who have already had solar panels fitted installed them to protect themselves against future energy price hikes while 62% needed to save money on their energy bills. Given this, it's pretty clear that consumers cannot afford to be switched off solar."