Photovoltaics

What are the rewards?

With the new Government “Feed in Tariffs”, not only do you get paid for the electricity you generate but you get paid twice! How would you like to start charging your electricity provider instead of them sending you bills?

In April 2010, the Government will launch its Clean Energy Cash Back scheme (or Feed-In Tariffs) via the energy provider companies who will pay consumers and organisations generous rates for any electricity generated via Solar Photovoltaic Panels or Wind Turbines.

In 2011 it is hoped that a similar scheme will be launched for the generation of hot water via solar thermal panels, heat pumps and biomass boilers. These schemes will dramatically reduce the payback period.

The Clean Energy Cash Back Scheme will have a significant impact on grants as the scheme is expected to take over from many of the domestic grants being offering currently via the Low Carbon Buildings Programme (LCBP) scheme.

From 1 April 2010 householders and communities who install low carbon electricity technology such as solar photovoltaic (pv) panels and wind turbines up to 5 megawatts will be paid for the electricity they generate, even if they use it themselves. The level of payment depends on the technology and is linked to inflation.

They will get a further payment for any electricity they feed into the grid. These payments will be in addition to benefiting from reduced bills as they reduce the need to buy electricity. The scheme will also apply to installations commissioned since July 2008 when the policy was announced.

A typical 2.5kW well sited solar pv installation could offer a homeowner a reward of up to £900 and save them £140 a year on their electricity bill.

Photovoltaic & Solar Water Heating Panels

How do Photovoltaics work?

Solar electricity systems capture the sun's energy using photovoltaic (PV) cells. The cells convert the sunlight into electricity, which can be used to run household appliances and lighting.

PV on the roof is a very stylish way of generating some, if not all, of a building’s electricity requirements with no running costs and no pollution, indeed every Kilowatt hour of solar electricity you produce will save approximately 0.56 Kg of CO2 . A typical household, careful with it’s use of electricity, should be self-sufficient over a year with a 3kWp system and save nearly 1.4 tonnes of C02.

With the introduction of the Feed-In Tariff (FIT) there is now a significant financial benefit to generating renewable electricity.

The FIT will pay for all units generated, regardless of the amount used on site or exported to the grid.

For PV systems the rates will be paid for 25 years:

Up to 4kwp: new build 36.1p per unit; existing buildings 41.3p.

For both new build & existing buildings, between 4 – 10kWp 36.1p, and between 10 – 100kWp 31.4p.

There are three sources of revenue for generators:

The FIT, payable on all units generated

The value of the units you use and therefore don’t buy from the grid

The amount your electricity supplier pays for exported units – to be standardised at 3p per unit when the FIT begins in April.