Solar still a good option despite subsidy cut and VAT hike, says industry

Trade body says solar panel installation is still attractive for consumers but average payback period will almost double

Solar panels still make financial sense for consumers despite a double whammy of subsidy cuts and a rise in VAT rates, the industry has said.

Midnight on Thursday marks the final chance for homeowners to secure the current incentive of 12.47p per kWh for electricity from solar panels. The feed-in tariff scheme then closes to new applicants for three weeks and anyone installing panels will get 4.39p per kWh, a 65% cut that was branded "huge and misguided" when it was announced just before Christmas.