 Court ruling means quick homeowners can lock in to high solar tariff payments before 3 March
25 January 2012: The Government has lost its appeal against the pre-Christmas legal ruling that the early reduction of the solar feed-in tariff was illegal. It has had to set a new reference date (the date by which solar installations must be generating electricity to qualify for the highest tariff) of 3 March 2012.
Nick Shapland, Consultant with PKF Financial Planning Limited, says "Assuming that the Government doesn’t successfully challenge today’s decision, home owners and small businesses who act fast may be able to lock in to a solar feed-in tariff for 25 years that will give them an annual tax-free return of around 9% on their capital investment in solar panels. Those who miss the 3 March deadline could still enjoy returns of around 4.5% on the reduced tariff rate, so all is not lost if you can’t get the equipment installed in time."
“There is bound to be a rush to get panels installed before the deadline because you just can’t find investments that deliver this sort of return in the current economic climate. And, as this is a Government backed scheme, it ought to be more stable than traditional long term investments that financial advisers can recommend."
“Of course, it is never sensible to rush into any investment decisions and buying an asset that will not pay for itself for a number of years carries many practical risks. For example, what happens if you decide to move house - will you be able to take the panels with you? In addition, the Government has indicated that it is seeking permission to appeal the decision at the Supreme Court, so today’s ruling could be reversed. Even so, I suspect that solar installers will be very busy over the next few weeks.”
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For further information, please contact: Andy Konieczko, 020 7065 0537, andrew.konieczko@uk.pkf.com
Notes to Editors:
1. PKF (UK) LLP is a leading firm of accountants and business advisers with more than 1,500 partners and staff operating in 23 offices in the UK mainland firm, incorporating a wholly-owned financial planning company and associated offshore practices. The firm specialises in advising growing and entrepreneurial/owner-managed businesses, AIM and fully listed companies, and also has extensive experience in the public and not-for-profit sectors. Principal services include assurance and advisory; taxation; consultancy; corporate recovery and insolvency; corporate finance and forensic. The firm has particular expertise in advising sectors such as hotels and leisure; mining and resource; public sector; real estate and construction; professional practices; not-for-profit; and medical. The firm’s web site is www.pkf.co.uk
2. PKF (UK) LLP also offers financial services through its FSA authorised company, PKF Financial Planning Limited. PKF (Isle of Man) LLC is a limited liability company registered in the Isle of Man. PKF (Channel Islands) Limited is incorporated in Guernsey.
3. PKF (UK) LLP is a member firm of the PKF International Limited (PKFI) network of legally independent member firms. The PKFI member firms have around 2,200 partners and more than 21,000 staff in around 125 countries.
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