For many, the introduction of the Feed in Tariff's (FiT) has been the main driver to consider installing a solar PV system.
The FiT is paid for every unit of electricity you generate irrespective of whether you utilise this energy in the home or export it to the grid. Where you utilise the energy you of course will not be paying your supplier for electricity whilst any energy exported to the grid attracts a further payment.
Whilst rates are being gradually reduced this is being matched by falls in the prices of components and installing a solar pv system still makes great economic sense.
a) tax free;
b) index linked to the Retail Price Index (4.8% in 2012), and
c) will be paid for 20 years at the rate prevailing at the time the system was commissioned.
Feed in Tariff Rates
The feed in tariff rates payable for systems commissioned after 1st August 2012 are set out in the table below;
Solar PV Feed in Tariff Rates
* These are the rates payable provided the property possesses a current an energy performance certificate (EPC) level D or above.
Under the current 'degression' model rates will continue to fall by around 4% every quarter subject to rates of installation in the preceeding quarter.
For full details of the current FIT scheme please follow the following link to the OFGEM website.
Reduced electricity bills
A typical residential PV system can produce around 40% of the electricity a household uses in a year. During sunny daylight hours your system will be producing electricity and any demand for electricity within the house will be met in the first instance by your locally generated electricity. So, rather then setting the washing machine or dishwasher to run overnight, run these appliances during the day to use your 'green' electricity and cut your energy bills.
Sell electricity back to the Grid: if your system is producing more electricity than you need, or when you can't use it, the system will pump this electricity back into the grid and pay you a modest 3.3p / kW for it.