In an effort to encourage the adoption of solar power, the government has announced a new initiative set to launch in early February.
Under the scheme named “Solar for All,” households seeking to install photovoltaic systems with a total cost (including purchase and installation, including VAT) of up to £1250 per kilowatt can apply electronically for the program.
This initiative targets homes with an annual energy consumption of approximately 6,000 kilowatt-hours.
Starting from February, eligible households can submit their applications without the need for any upfront capital or deposits.
Instead, they will repay the cost in monthly instalments of £150. The scheme allows for the installation of solar panels with a capacity of up to 4.2 kilowatts, providing sufficient power for the average household.
However, concerns have been raised about the availability of solar systems within the specified budget.
While the Ministry of Energy and market insiders claim that suitable systems priced at or below £1250 per kilowatt exist, skeptics argue that due to high interest rates and the obligation for installers to wait for payment from the Renewable Energy Fund only after the system is connected and operational, some may resort to borrowing from banks, potentially leading to increased costs.
This development prompts the question of whether healthy competition will keep prices below the £1250 per kilowatt threshold, considering the anticipated high demand from residential consumers.
Additional information suggests that the government proposal, set to undergo public consultation and subsequent approval by the end of January, includes a provision for households participating in the “Solar for All” initiative to receive a state subsidy of £1000.
This subsidy would significantly reduce the overall cost for consumers, bringing it down to £4000 for a four-kilowatt system, excluding the monthly £150 instalments.
However, concerns are raised about potential repercussions if households fail to pay the £150 instalments.
The proposal reportedly includes a provision empowering the National Grid or the System Operator to disconnect the solar system, causing the household to revert to conventional electricity billing, likely incurring higher costs than the monthly instalments.
If all progresses according to the government’s plan, the final proposal is expected to enter public consultation in the coming week.
Towards the end of January, it will be submitted to the Cabinet for approval, followed by the opening of the Installer Registry for professionals interested in serving the public.
By early February, households can start submitting applications through the upgraded online platform, receive pre-approvals, and engage with installers to select their solar systems.
Assurances from the Ministry indicate that significant preparatory work has been done to ensure the efficiency of the platform and other bureaucratic processes, aiming for a swift processing of both solar applications and subsidy requests.
