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It’s been a busy month for solar panels and yet more news about solar panel grants has been announced this week. The subsidy for household solar panels faces a fresh set of cuts later this year as the government looks to free up more budget in the industry.

Government Unveils Plans for Regular Solar Panel Grant Cuts

The solar panels industry can expect to see plans similar to those in Germany roll out later this year. The new plan will see regular cuts, depending on how much solar power is installed, rather than see abrupt cuts as per proposed at the end of 2011.

Solar panels installations have soared over the last year and in particular, since the news that solar panels must be installed before 3rd March to benefit from the higher Feed-In Tariff of 43.3p per kilowatt of electricity generated.

Ministers predict that the new system will see an estimated 22 gigawatts of solar power installed by 2020. Many, however, see this as ambitious considering less than 1 gigawatt has been installed since the subsidy scheme began in April 2010. Will an increased number of homeowners choose to install solar panels despite the solar panel grants cut?

Prompting a mixed reaction within the industry, some feel the cuts will leave it in ‘turmoil’ whilst others believe it will make no difference. This week’s proposal will see the 21p per kilowatt tariff applied to solar systems installed on or after 3rd March with a further fall to between 13.6 p and 16.5p per kilowatt in July.