In February I blogged about DECC’s position on customers signing up for a Green Deal loan and receiving FITs and how the two schemes would work together. At the time, their stance was that customers could claim both as long as the technology met the ‘Golden Rule’ conditional to a loan being granted without the FITs being counted as income in the calculation. This made sense, as including the FITs would mean that the Government was partially paying back its own loans, but in practice this meant that only the highest performing systems, if any, could benefit from funding from both schemes. Now, DECC has changed its position so that a Green Deal loan can be used to partially fund a system also receiving FITs, explained in a Green Deal and FIT Quickguide. Allowing Green Deal finance to be made available in this way will significantly bring down the upfront cost of solar PV systems, hopefully making them accessible to far more people whilst retaining the attraction of the FIT payment scheme delivering a faster payback time. Simply put, it means that your solar PV system will be cheaper upfront, but will deliver slightly less profit overall. Despite the loss in income in the long term, systems are still very much financially worthwhile under this arrangement, as shown in DECC’s worked example:
If you’re thinking about getting a Green Deal for your solar PV system (or any other renewable energy technology) take at a look at our comparison of Green Deal Providers and Assessors in your area to bag yourself the best deal.