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NEWS UPDATE: New feed in tariff announced from 12th December 2011, 21p/kWh provides up to 8% ROI tax free.
Solar electricity panels generate electricity, in many applications this is preferable to the historically popular thermal systems which generated hot water.
These systems are usually grid connected. Both wind power and Solar electricity panels can generate
electricity that can be sold back to your electricity supplier. Since
April 2010 feed in tariffs have been available that pay larger sums to system
owners, this can give a return on investment (ROI) of more than 10%.
Photovoltaic solar panels work in a similar way to the solar
cells sometimes found on a calculator. The free
electricity generated by the sun can either supplement your
existing electricity supply or be designed to provide the sole source of
electricity for appropriate electrical equipment.
The sunnier the position the more electricity that can be
generated. This often, but not always, means positioning the panels on a
south facing roof.
Solar electricity systems can be installed on both new
and existing properties. Our trained team will survey your property and
advise you about the best position to take full advantage of your
potential solar energy. A well positioned 1kW peak power solar PV system will
generate between 700 and 850 kWh of electricity per year. 1 unit of
electricity is equal to 1 kilowatt hour (kWh). This means that with the Government's incentives a 4kW solar electricity system could save and generate over £1700 per year.  |
Exported Electricity and FIT
Once the solar PV system is installed, the electricity generated
will automatically be used in your home. If more electricity is being
generated than is being used then the surplus is exported back onto the
national grid. The Government's Feed In Tariff (FIT) will pay 43.3p/kWh
(systems less than 4kW peak power) for all electricity generated even if
this electricity is used in the property. This then gives the system
owner a further saving as they do not have to purchase electricity
from the grid when the system is generating more than required by the property. Any surplus electricity is
exported onto the national grid, the rate that is paid for this
electricity varies between electricity suppliers.
These improvements to the export tariffs mean that the payback for photovoltaic solar panels is becoming very rapid.
Given the rapid uptake in solar PV installations the Government is expected to reduce the available FiT payment to new entrants in March 2012. Solar electricity systems commissioned before April 2012 will be guaranteed the current generous payment for 25 years. This part of the legislation is current under consultation and the current levels of feed in tariff may end on the 11th December 2011. New rates have been proposed at 21p/kWh (<=4kWp retrofit). This will still provide an attractive return on investment of between 4 and 8% per annum.
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