One of the biggest incentives for investing in a solar PV electric system is the government backed feed-in tariff, designed to encourage homeowners to invest in renewable energy.
The scheme pays a set price for every kWh or unit of electricity that your system produces, regardless of whether you use the power yourself or not. In addition to this, you are also entitled to an additional payment for every kWh of electricity that you do not use and supply back into the national grid. These payments offer a guaranteed tax free income that will increase in line with inflation for the next 20 years.
In order to be eligible for the full feed-in tariff rate your house must hold an Energy Performance Certificate (EPC) of D or above. We are able to arrange for an EPC to be carried out on your property for you by an accredited supplier. For more information on EPC's click here.
For installations registered between now and 1st July 2015
|Retrofit systems to an existing house up to 4kW||13.39p per kWh|
|New build systems up to 4kW||13.39p per kWh|
|Systems from 4kW-10kW||12.13p per kWh|
|Systems from 10kW-50kW||11.71p per kWh|
|Systems from 50kW-100kW||9.98p per kWh|
|Systems from 100kW-150kW||9.98p per kWh|
|Systems from 150kW-250kW||9.54p per kWh|
|Systems greater than 250kW||6.16p per kWh|
|Standalone system||6.16p per kWh|
|Export tariff||4.85p per kWh|
Of course, in addition to all this you will also benefit from lower energy bills. A typical PV system produces around 50% of the electricity a household uses in a year and all of the electricity that you produce and use yourself will be totally free of charge. You will only need to pay electricity when your panels are not producing electric, for example in the evenings and at night.
Overall, an average system generates a return on investment in the region of 14% to 16%, taking approximate 6 years to pay off your initial outlay. After this, every penny that you earn from the feed-in tariff is pure profit. What’s more, if inflation rises and the price of electricity increases, your return on investment will improve even further.
See the example below to see exactly how much you could be saving and earning with a typical 4kWh solar PV installation.
The figures below are based on a typical 4kWh system installed on the south facing roof of a four bedroom house in Somerset.
|Cost of installation||£6,000|
|Annual solar PV electricity production||3840 kWh|
|Annual feed-in tariff income for electricity generated
13.39p x 3840kWh
Please note: income is earned for every unit of electricity that a solar PV system generates, regardless of whether the power is used by the owners or not. Feed-in tariff payments are guaranteed for 20 years and will increase in line with inflation.
|Annual feed-in tariff income for electricity fed into the grid
4.85p x 1920kWh
|Annual saving on energy bills
Please note: saving is based on current electricity prices, so this saving will increase as electricity prices rise.
|Total annual saving||£905|
|Total earnings over 20 years||£18,100|
|Tax free profit||£12,100|
If you would like to find out how solar PV could work for you give us a call, email us or fill in our enquiry form to arrange a free on site assessment. We promise to give you honest advice on the suitability of solar pv for you and will design the optimum system to meet your requirements.