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One benefit of High Inflation?

jimjames
Posts: 18,481 Forumite


Seeing the BoE inflation forecasts yesterday made me think about the impact on the FIT rates paid which are based on December RPI. Last year was around 7% increase but from the forecasts it would seem that we're likely to be looking at 15% or more for RPI by December so next year could be quite a massive jump in the rates that are paid to well over 70p for the early adopters. Some small comfort if you get FIT payments that could partially offset the massive jump in energy bills along with the generated electricity from solar panels.
Remember the saying: if it looks too good to be true it almost certainly is.
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You are quite right. Could be a significan jump in payments. Which I welcome.It would however be far less than the price rise of power in general which will be three times that(a 200% increase ) on what was the typical cost last year!..........or more.1
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Heedtheadvice said:You are quite right. Could be a significan jump in payments. Which I welcome.It would however be far less than the price rise of power in general which will be three times that(a 200% increase ) on what was the typical cost last year!..........or more.3.995kWP SSW facing. Commissioned 7 July 2011. 24 degree pitch (£3.36 /W).
17 Yingli 235 panels
Sunnyboy 4000TL inverter
Sunny Webox
Solar Immersion installed May 2013, after two Solar Immersion lasting just over the guarantee period replaced with Solic 200... no problems since.
13 Feb 2020 LUX AC 3600 and 3 X Pylon Tech 3.5 kW batteries added...
20 January 2024 Daikin ASHP installed3 -
When I installed my panels in 2012, the FIT payments were enough to cover my remaining gas and electricity bills on an annual basis ( running a surplus in summer, shortfall in winter).That's still the case now, I think, with gas at 7.4p and electricity at 28p. Will be interesting to see how the rest of 2022 and then 2023 turns out.N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Vodafone BB / iD mobile. Ripple Kirk Hill member.
2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 33MWh generated, long-term average 2.6 Os.Not exactly back from my break, but dipping in and out of the forum.Ofgem cap table, Ofgem cap explainer. Economy 7 cap explainer. Gas vs E7 vs peak elec heating costs, Best kettle!2 -
My Panels were install Nov'11 and from the start covered my energy use and water bills, not the case now, sadly I have to contribute a small amount.
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The real benefit of high inflation is for those who borrowed money to pay for money saving technology like solar panels. If you can pay it back when the money is of lower value then it effectively works out cheaper. ROI calculations for solar, batteries and EVs are looking better by the day.3
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I had wondered if it'd make sense at some point for the government to try and buy the early adopters out of their agreements. It might make sense in a number of cases - like for people wanting to move, or upgrade their panels to better performing panels.Central Beds, 2.02kWp (9 x 225W) south facing with some morning shade, installed 2011 (£7.16/Wp). Tigo monitoring/optimisers on all panels, Growatt MIC 2000 TL-X Inverter and Solar iBoost installed 2022. (4 x 415W + 6 x 405W garden experiment connected to SunSynk 3.6 hybrid inverter & 2 x 5.3kWh SynSynk batteries) (4 x 405W panels queued to go somewhere)0
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Do not forget that the early adopters also have the contract for 25 years at RPI so they will reap inflation now for quite a few more years to come, any predictions what it could be ?.1
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gefnew said:Do not forget that the early adopters also have the contract for 25 years at RPI so they will reap inflation now for quite a few more years to come, any predictions what it could be ?.Remember the saying: if it looks too good to be true it almost certainly is.0
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jimjames said:gefnew said:Do not forget that the early adopters also have the contract for 25 years at RPI so they will reap inflation now for quite a few more years to come, any predictions what it could be ?.Central Beds, 2.02kWp (9 x 225W) south facing with some morning shade, installed 2011 (£7.16/Wp). Tigo monitoring/optimisers on all panels, Growatt MIC 2000 TL-X Inverter and Solar iBoost installed 2022. (4 x 415W + 6 x 405W garden experiment connected to SunSynk 3.6 hybrid inverter & 2 x 5.3kWh SynSynk batteries) (4 x 405W panels queued to go somewhere)2
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Latest forecast for inflation in January is 21.4% for RPI. If it's even close to that in December then the FIT rate will leap from April.
Citigroup expects the retail prices index (RPI) measure of inflation, which is not classified as an official statistic, but is linked to rises in rail fares, air passenger duty, mobile phone tariffs and about a quarter of UK government debt interest, to hit 21.4pc next January.
Remember the saying: if it looks too good to be true it almost certainly is.0
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