The plummeting cost of photovoltaic (PV) solar panels and installation is a huge positive for homeowners keen to improve their energy efficiency. In fact, the market is doing so well, the government has been forced to adjust its Feed-in Tariff (FIT) commitments.
Under the new tariff, those installing solar panels will be paid just 21p/kWh, down from the current 43.3p/kWh, for energy they produce. Ministers from the Department of Energy and Climate Change (DECC) indicate this decision has been taken to ensure the scheme remains viable.
The cost of the average PV installation has fallen by 30 per cent, figures indicate, and ministers estimate the cost of FIT to taxpayers will hit £980 million a year by 2014-15 under the current tariff.
Some people have criticised the move, claiming the government is actually limiting supply to stave off a threat to the centralised UK energy supply.
Defending the decision, climate change and energy minister Greg Barker explained: "My priority is to put the solar industry on a firm footing so that it can remain a successful and prosperous part of the green economy, and so that it doesn't fall victim to boom and bust."
DECC is also consulting on other proposals, which include making access to the scheme dependent on the energy efficiency of a property. This will require homeowners keen to take advantage of FITs to ensure their property's Energy Performance Certificate meets the required benchmark before they install the solar panels.
In some cases, additional work may be necessary, such as installing insulation, better double glazing and draft-proof doors.
Getting a professional to assess the cost of the work will enable households to calculate whether FITs are in their best interests. It may well prove more lucrative to consider alternatives to PV, such as solar thermal technology.
The Bosch Group head of external and government affairs at Worcester, Neil Schofield, believes linking the tariff to energy performance will "ensure that public money is not being wasted on properties which are inadequately insulated".
"The announcement could also have a positive effect on solar thermal sales which remain a very viable and cost-effective option for householders to reduce their energy bill," he added.