The BeneFITs of Solar Power, Feed in Tariffs (FIT's)
On the 1st April 2010, Feed-In-Tariffs (FIT’s) were introduced. Very simply they are a new Government backed
measure to make it worth your while to produce renewable electricity. The Feedin tariffs were amended by the
Government from 12 December 2011 and the new rates are shown below:-
The aim of FIT’s is to help Home Owners, Housing Associations, Small Businesses and other Community Groups start
to make the “big energy shift” to a low carbon economy and contribute to the Governments 2020 Renewable Energy
Targets.
+ Solar Power - First Benefit of Solar Power - The Generation Tariff
You earn a fixed income for every kilowatt hour (kWh) of electricity you generate and use in the property. For example: Retrofit systems of 4 kWp or less, will earn you a generation tariff of 43.3p kWh. New build properties earn a generation tariff of 37.8p. The good news is that these tariffs are index linked and guaranteed for 25 years, and paid whether you use the power you generate or you send it to the electricity grid. Note: If the electricity is generated for domestic consumption, these payments are tax free. Businesses are charged tax at the appropriate rate.
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+ Solar Power - Second Benefit of Solar Power - The Export Tariff
You will also earn an additional bonus payment for every kilowatt hour of electricity you generate and sell back to the grid. A fixed price has been set for this bonus payment in the legislation at 3.1p/kWh you export. Again it is index linked to the retail price index. However, you also have the opportunity to opt out of this fixed price and try to negotiate a better rate with your electricity supplier. Each year you can decide whether to accept the fixed 3p rate or opt out. You can use the following link to find current export tariff prices.
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+ Solar Power - Third Benefit of Solar Power - The energy you buy from your electricity supplier
When you can’t generate enough electricity for your needs, you buy electricity from your utility company at the normal rates. However it will be much less electricity than you currently buy. The table below outlines the relevant generation tariff for Solar PV installations (from April 1st 2011) and also outlines the period for which the tariff is guaranteed.
Solar Power
| Scale of
Generation |
Tariff (p/kWh) |
Duration (Years)
|
| New Build scheme <4kW |
21.0
|
25
|
| Retrofit to existing house <4kW |
21.0
|
25
|
| Installation of >4-10kW |
16.8
|
25
|
| Installation of >10-50kW |
15.2
|
25
|
| Installation of >50kW-100kW |
12.9
|
25
|
| Installation of >100kW - 150kW |
12.9
|
25
|
| Installation of >150kW - 250kW |
12.9
|
25
|
| Stand alone systems |
8.5
|
25
|
Feed-in tariffs are designed so that the average monthly income
from your installation will be significantly greater than your monthly loan repayment (with a 25 year
loan).
How It Works
|
A solar panel is made of PhotoVoltaic cells, also called solar
cells. These cells are made from a semiconductor such as silicon so that when light strikes
the cell an electric field is created and collected as a direct electric current - or DC
electricity.
Within a single solar panel there are many cells connected
together.
The amount of electricity produced by the panel depends on how
much light strikes down and how many cells it contains.
|
Panels are connected together and then wired to a device called an inverter. The DC current
produced by the panels is changed to alternating current (AC) by the inverter and then passed into
your home for you to use wherever you need it.
The electricity you do not use is automatically passed into the National Electricity Grid.
Most panels are guaranteed for a minimum of 20 to 25 years and in most cases the operational
lifetime of a panel is expected to be in the region of 30 to 40 years.
|
For more information on Feed-in tariffs and the benefits of Solar
Power please our sales
department
| 
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