Impact of wholesale gas prices on solar panel receipts

sjbg2308

Morning everyone. I was just wondering if anyone knew whether the increase in wholesale gas prices, and therefore increase in electricity / gas prices, will lead to a change in how much I receive on export from my solar panels back to the grid. I know Ofgem review the rates annually, which generally leads to a small inflationary increase but I was just thinking would it be unfair if I end up paying more for my electricity bill next year without a corresponding increase in the amount I generate and sell back to the grid?

Reed_Richards

I don't believe fairness has ever entered into the equation!

[Deleted User]

sjbg2308 said:

Morning everyone. I was just wondering if anyone knew whether the increase in wholesale gas prices, and therefore increase in electricity / gas prices, will lead to a change in how much I receive on export from my solar panels back to the grid. I know Ofgem review the rates annually, which generally leads to a small inflationary increase but I was just thinking would it be unfair if I end up paying more for my electricity bill next year without a corresponding increase in the amount I generate and sell back to the grid?

You signed up to a FIT Scheme knowing what the terms and conditions were for the Scheme. Why would the Government want to change those terms? 

gefnew

It Does increase with rpi inflation index
on Decembers rate then applied on the 1st of April the following year.
This is set for twenty or twenty five years depending on installation date.
Regards

sjbg2308

I did think it was a long shot... but wasn't sure. Just considering whether it's worth investing in a battery that could store excess to be used in my house rather than pulling from the grid. Might save me some cash in the long term, although short term cash outflow for the battery. 

gefnew

But RPI could go very high due to this.
Regards

[Deleted User]

gefnew said:

But RPI could go very high due to this.
Regards

I remember the time when inflation was running at 15%. It left many scars.

gefnew

The Mortgage rates of 15%.
Regards

gazapc

If you don't have a smart meter, you get a fixed assumption of export no matter what you consume. That is already  advantageous so maximise your consumption and you will save money against any increase.

If you have a smart meter, the likes of Octopus offer an export tariff with much higher rates (currently - though last spring prices were super low).

The reason why Ofgem won't increase it dramatically is because it would be unfair on consumers. You got a guaranteed fixed tariff for 20/25 years and made your investment based on those assumptions; why should they give you a bonus? The subsidy scheme for massive offshore wind farms and nuclear works in the same way - a fixed price is offered.

matelodave

[Deleted User] said:

gefnew said:

But RPI could go very high due to this.
Regards

I remember the time when inflation was running at 15%. It left many scars.

Inflation reached 25% in 1975, it was the mortgage rate that reached 15% (caused us a bit of a struggle when it did)

worrywart_3

With mortgages so high and people mortgages to the hilt most would be repossessed at less than a 1/4 if that now