Last year saw the Feed-in Tariff closed to new applicants, leaving a very different landscape to the heady days of 2010, when the Feed-in Tariff scheme was first launched and the subsidy was around 43p per kWh. In October, solar tax rates also got a shakeup, meaning not every installation is eligible for 5% VAT. So, are solar panels worth it today?
Speaking purely from a financial point of view, the answer is a resounding yes. Of course beyond the financial, there are many other environmental benefits to be gained from installing solar, installing residential battery storage, driving an electric vehicle etc. Not least because they all contribute directly or indirectly to tackling air pollution and the climate crisis.
Back to the financials. The solar subsidy may have fallen, but so has the cost of the technology. Overall the cost of domestic solar electricity is now around 8p per kWh. This is well below the 16p average domestic import cost from the grid (which, by the way, increased by 6% in the last 12 months...).