Reduced interest payments on FIT TARIFF

32phil

When I invested in solar everything was expensive with risks but the 25 year contract encouraged me to invest. Now the Government has seen fit to change the contract this; undermines trust in such schemes and using the excuse most use CPI instead of RPI is weak to say the least.
I would hope large institutional investors will take on the government . I would join a class action to recover potential future losses. As the equipment ages I will no doubt have to replace it as I have done with my inverter and those costs are accelerating above CPI.

Netexporter

I'm sure you've long since had your capital investment returned. Have you changed your deemed export to a SEG? That will probably offset the indexing change.

silverwhistle

Well, I won't be joining you in any class action. I've done very well out of FITs and long since paid off the costs including opportunity costs too.

I've done so well out of it that I haven't even bothered to investigate whether i'd be better off changing from deemed export, as I don't like to be greedy with public money which can find much more needy homes than mine.

This is OP's first post on these forums, so if you're a bit hard up or looking for additional ways to earn income or make it go further I suggest you range wider on here for some ideas.

QrizB

Welcome @32phil to the forum.

When I invested in solar everything was expensive with risks but the 25 year contract encouraged me to invest. Now the Government has seen fit to change the contract this; undermines trust in such schemes and using the excuse most use CPI instead of RPI is weak to say the least.

You'll find a long thread on the main Energy forum about the consultation and subsequent change:

https://forums.moneysavingexpert.com/discussion/6641376/plans-to-change-what-households-make-from-solar-feed-in-tariffs-039-feels-a-breach-of-pro

I would hope large institutional investors will take on the government .

The consultation response document notes the risk of judicial review. Unless you've got a spare million we'll have to wait and see what happens next.

As the equipment ages I will no doubt have to replace it as I have done with my inverter and those costs are accelerating above CPI.

Regarding the bit in bold, I think you might be mistaken. By all meaningful measures, domestic solar PV has got much cheaper over the past 15 years and is expected to continue to do so.

Just as an illustration, my PV system cost around £8k in 2012. The BoE inflation calculator says that's equivalent to almost £12k today. Yet if I wanted to install an equivalent system now, it would cost closer to £3k.

silverwhistle

Just as an illustration, my PV system cost around £8k in 2012.

£6k for 4kWp in August 2013, so FITs stimulated the market and brought down costs.. :-)

It should also be pointed out that rates will still go up with inflation, just not by the more generous measure.

debitcardmayhem

I don't get payments towards the £9k cost of my PEV system, perhaps I should lobby for FIT users to be blocked from SEG .

Take it easy forum regulars I wouldn't , but any uplift by whichever measure of inflation should be taken as a bonus, I can't find any reason for supporting those who feel it's unfair.

32phil

For me it’s the principle of changing the terms of the contract halfway through. Financial institutions wouldn’t cut my interest rate if I approached them and said I was paying too much.

I suppose my old electric meter going backwards was a bonus.

Netexporter

A person of principle, I see.

JKenH

https://forums.moneysavingexpert.com/discussion/comment/81870991#Comment_81870991

Given that you feel strongly about principles I would have imagined that you would have reimbursed your energy supplier for the loss they suffered as a result of the meter going backwards after you installed solar panels, but apparently not.

Maybe I have misunderstood, all my life, what is meant by principle and you could, perhaps, explain please.

Ectophile

https://forums.moneysavingexpert.com/discussion/comment/81870991#Comment_81870991

Your contract is with your FIT provider. Probably your electricity company (or a previous one). They pay you what the government tells them to.

The government is the government. They can change the rules whenever they like.

Krakkkers

So what will the rise be in April this year?