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Government change to subsidies will affect savings for schools

Last week an announcement from the government indicates the government plans to cut solar subsidies for new systems installed from January 2016 by nearly 80%! This does not affect systems currently in place or those that are installed before the end of 2015 BUT Schools installing systems next year, will not benefit from the savings we have quoted.

What does this mean?

Schools that install solar Systems BEFORE mid-December will be able to buy electricity from us at up to 50% lower price than they are currently paying.

BUT if the proposed cuts to subsidies of up to 80% go through, and we think they will, systems installed next year will only be able to buy electricity at 5-10% lower price. So, a school that could save £5000 a year if installed in 2015 may only be able to save £500 a year at best if done next year.

What is Solar for Schools doing?

Solar for schools are working hard on the figures and with the government via industry bodies. We need to determine what a reasonable cut to subsidies should be and how much we can cut costs in order to maximise savings to schools. The exact reduction in savings for schools that install next year vs this year is unclear, but what is clear is that they will be dramatically lower. Many in the industry believe solar will no longer be economically attractive at all.

We are working hard on alternative funding models including Crowdfunding that would enable us to continue offering attractive savings to schools, but it is clear that the greatest savings will go to schools who can manage to install this year.

Can you speed up the decision to go solar on your school?

Unfortunately all this means that we only have a few weeks left in which to submit grid applications for interested schools. We need signed agreements from schools before the end of September.

If your school is interested and can collect signatures quickly please contact us ASAP. We will do our utmost to try and complete your school project in time and are prepared to do some work upfront at out risk while you collect the required signatures.

Whilst the cut in subsidies makes a dramatic difference it doesn’t change our thinking, we still want the same end goal – schools going solar and more renewable clean energy being used.