Solar PV Electric
Why should I install solar panels on my roof?
With the introduction of the Feed-in Tariff scheme on 1st April 2010 Solar PV systems are becoming increasingly recognised as a viable means of generating a revenue stream in addition to reducing energy bills.
We think the term Feed-in Tariff is misleading in that not only do you get paid for PV generated energy fed back into the Grid but you also get paid for the PV generated energy that you use! See the illustration below which shows potential combined savings and income of £1000 per annum.
For retrofit systems of less than 4kW fitted before 31st March 2012 the tariff is set at 43.3p per unit of electricity (1kW hour) and this is guaranteed to 2035. However, the lock in tariff rate will reduce by 7% each year after 2012 so delaying installation will reduce your return on the installed equipment.
Domestic Property With 2.5kW Solar Panel Installation
| System output: | 2.5kWp |
| Electricity generated annually: | 2,084kWh |
| Total annual benefit: | £1,080 |
| Total benefit over 25 yrs: | £37,979 |
| Installation cost: | £8,000 |
| Total profit: | £29,979 |
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The Other Benefits
All Feed-in Tariff payments and electricity bill savings are tax free.
The Feed-In Tariff will be increased in line with the Retail Price Index.
VAT on the installed system is at 5% for domestic systems.
How Does It All Work?
PV technology has been around for many years. Electricity is generated from glass panels housing crystalline silicon cells. Each cell creates a small but significant amount of direct current (DC) which is accumulated and fed into an inverter which converts the DC source into mains voltage alternating current (AC) synchronized with your electricity suppliers electricity. The PV generated electricity is either used on the premises or fed back into the grid.