The benefits of installing a PV Solar System are both financial and environmental. The Government has introduced a system of Feed In Tariffs (FITS) to encourage people to install small scale renewable energy systems.
For systems registered on or after the 1st of August 2012, these tariffs last for 20 years and are index linked to the Retail Price Index (RPI).
The total revenue that you could earn in a year from your Solar PV System consists of 3 parts:
• Generation Tariff
• Export Tariff
• Savings on your electricity bill
Generation Tariff (from 1st January 2015)
You will earn a fixed income from the electricity generated by your Solar PV System at the rates shown below:
Up to 4kw - 13.88p per kwh (the maximum for a domestic premises)
> 4 to 10kw - 12.57p per kwh
> 10 to 50kw - 11.71p per kwh
In addition to the FIT you will receive an extra payment for electricity exported back to the network. The Export Tariff is calculated at the rate of 4.77p per unit for 50 % of the total electricity that you generate.
So, for every 100 units of electricity generated by a system of up to 4kw you will receive:
£13.88 + £2.38 = £16.26
The Generation and Export Tariffs are paid by your electricity company by cheque or direct debit on a quarterly basis.
The electricity that you generate from your panels is free for you to use. So you will also make a saving on your electricity bill. This saving is likely to be between 12p and 15p per kwh depending on the agreement that you have with your electricity supplier.
In the first year a typical Solar Panel Installation could provide the following return:
£438 (Generation tariff)+ £75 (Export Tariff) + £180 (Savings) = £702.
The actual figures will depend on the size of the system, the orientation / pitch of your roof and any shading. This example is based on a 3.5kw system, on a south east facing roof with an angle of 30° and little or no shading and assumes that you are able to use 50% of the free electricity that you generate.
Over the past 20 year period the cumulative total could amount up to over £22,000.
Please ask if you would like me to survey your property and calculate out how much you could earn.
All Tariffs mentioned on this page assume that the property has an Energy Performance rating in band D or above, or a lower FIT will apply.