Through this they get paid for every unit that they generate whether they use it or export it to the grid.
The subsidy is currently paid at two rates, the Generation Tariff, of 21p per KWh (Kilowatt Hour) for all energy generated, topped up with the Export Tariff, which adds an extra 3.1p per kWh for electricity exported to the grid.
That return is tax-free, backed by Government guarantee for 25 years and has an added benefit in that it is index-linked to retail prices inflation.
As reported above subsidies and their lifespan will now fall from 1 August. But crucially the rules are that those who install certified solar panels systems before set cut-off dates are locked in at that period’s rate for 25 years, so homeowners who beat the deadline should have nothing to fear, however much the Feed-in Tariffs are cut by in the future.
Of course, the other added benefit does come from a reduction in bills, as when homes are using solar energy they are not racking up electricity costs from suppliers.
So is this worth doing?
There are three big things to consider about buying solar panels: the direction your roof faces in, where your home is and the size (and quality) of the installation.
A south facing roof, in southern England, will deliver the best returns and the largest a home solar panel system can be to get the best Feed-in Tariff rate is 4kWp. Adjusting each of these factors of location, direction and size will impact on performance and what you get back.
The Energy Saving Trust has a calculator on its site that can work out potential returns for you, although bear in mind that the £10,000 figures quoted for installation costs are more expensive than what solar firms are now suggesting they can do.
We crunched the numbers on the 3kWp system example that Evo Energy said would cost about £7,000, on a south facing roof, in South East England, for a home with £35 per month electricity bills.
Generation Tariff - £534
Export Tariff - £38
Energy bill saving - £79
Total return - £651
Disregarding the savings on electricity bills, that delivers a total return of £572 from Feed-in Tariff payments.
If a householder paid £7,000 for the solar panels, that equates to a 8.2 per cent annual income return, tax-free. (Including energy bill savings it is 9.3 per cent.)
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2 comments:
hello. first of all i would thank you for posting such an amazing blogpost. most of my queries are already explained here. also i hope lots find this post inspiring as well. keep up posting more such updates.
Solar Racking Manufacturers
This is really cool. Yeah, you can save us much more than half as what you've consumed with your previous bills. besides, this is also helpful to our mother earth. Yes, we can avoid from the negative effects from the usual. So, we have to purchase what is best for us and to preserve our natural environment.
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