Are Solar companies advertising a 43.3p FIT rate mis-selling?

Following the Court of Appeal’s decision to uphold the High Court’s ruling that DECC’s Feed-in Tariff (FIT) cuts were unlawful, opinion has been divided over whether new Solar installations completed and registered before 3rd March will receive a FIT rate of 43.3p or 21p.

DECC’s announcement to Parliament that they intend to appeal to the Supreme Court over the Court of Appeal's ruling has also prolonged the uncertainty over the FIT rate.

Some installers, as well as respected local and national news outlets, have taken the view that the 43.3p FIT rate has been reinstated and will drop to 21p should DECC be successful in their Supreme Court appeal.

However, any solar companies found to be selling to customers on this basis are guilty of mis-selling, according to the Renewable Energy Assurance Limited (REAL).

In an email to their members, REAL – who act as a governing body for Solar installers – have established that the FIT rate is at least 21p for Solar Panels up to 4kWp in size, completed and registered before 3rd March 2012.

There is the possibility that the FIT rate will return to 43.3p, but only if DECC are not granted, or are granted and lose, their Supreme Court appeal, as outlined in the email.

"Government cannot provide any certainty to consumers with installations that take place between 12 December 2011 and 2 March 2012. However, the Government has confirmed that these consumers will not receive a tariff lower than 21p (plus RPI index link) for 25 years".

"It might be that a consumer who installs between these dates will end up getting 43.3p/kWh for the whole 25 years, but this is far from certain at the moment and this expectation must not be the basis for any sale".

Cathy Debenham, founder and director of YouGen, echoes the stance taken by REAL in a blog post titled: "Buyer beware as rogue solar installers claim 43.3p feed-in tariff":

"A disreputable minority of solar panel installers are exploiting the confusion over the feed-in tariff caused by recent legal action, and promising returns that they may not be able to guarantee."

"These installers are promising that the rate of government subsidy on solar PV panels will be 43.3p per kWh generated. In fact, due to an ongoing legal battle, this cannot be guaranteed. Consumers may only get a feed-in tariff rate of 21p per kWh."

YouGen have also joined together with BusinessGreen, ClickGreen, Green Wise, and Renewable Energy Installer, to refuse editorial and marketing space to companies guaranteeing a FIT rate of 43.3p for 25 years.

This is in response to press releases and online advertising campaigns promoting a guaranteed 43.3p FIT rate, often with disclaimers hidden in the small print, which are misleading and aim to take advantage of the current uncertainty.

Five of the 'big six' energy companies have also confirmed to EnergyLink that they will pay the FIT rate of 21p until told otherwise - the other was uncertain. Significantly, none were willing to pay 43.3p until official confirmation was given by DECC.

In simple terms, all Solar installations up to 4kWp completed and registered between 12th December 2011 and 3rd March 2012 are guaranteed to receive a FIT rate of at least 21p for 25 years. This could return to 43.3p, if the Government loses its appeal, but can by no means be anticipated or guaranteed at this stage.

For customers considering solar panels, now represents a viable time to invest. Not only will you receive a guaranteed FIT rate of 21p – giving an estimated Return on Investment between 7.3 per cent and 9.3 per cent - but there is also the added bonus of the FIT rate potentially increasing to 43.3p, which would be backdated to the date of installation.

Try the online FIT Calculator to find out how much you can earn and save from solar panels. To receive three free no-obligation surveys from MCS accredited Solar installers, Apply Online now. http://www.homesolarpanels.co.uk/solar-pv/