Solar Photovoltaic
Solar photovoltaic (or PV for short) panels, is a technology in which daylight is converted into electrical power. Energy from the sun is used to create electricity that will operate electrical appliances and lighting.
Solar PV (photovoltaic) panels take sunlight and convert it directly into electricity for use in your home, significantly reducing the amount of electricity you need from your supplier.
A solar electricity system like this is a highly efficient means of generating electricity for domestic use from the sun's rays, using the most up to date photovoltaic modules.
The panels are about 1.5m x 1m and are ideally placed on an un-shaded, south-facing roof. The number of panels required will depend on how much electricity you want to generate. There are a few other components that need to be installed with the solar panel to monitor and upgrade the electricity that is generated. However, once installed, the system needs remarkably little maintenance, a yearly visual check is normally all that's required. Solar electricity generation is dependent on light intensity, not on heat, so it works even on overcast days.
- Environmentally friendly reduces carbon dioxide emissions
- Cut your bills - save money directly via the electricity you generate (power generation)
- Ongoing savings - solar panels continue to generate electricity for 25 years
The government has provided an incentivised feed in tariff for people taking up the "Green Agenda", this proved very popular for the last financial year. The incentive works through a payment made to you on a quarterly basis (which is a fixed unit rate payment) for every (KWh) unit of power generated by the PV cells. Even if you use this energy yourselves, this payment is guaranteed for 25 years.
In addition to this there is a FIT tariff for selling the excess electricity back to the "grid" on top of the generation tariff. So you can make money back from the power generation, whilst saving on the money you would have spent on the power used.
The Feed-In Tariffs are a Government-backed measure to make it worth your while to produce renewable electricity. There are three separate ways that the tariffs help you make money from generating your own energy.
Feed-in Tariffs (FITs)
The Generation Tariff:
You earn a fixed income for every kilowatt hour of electricity you generate and use in your property. The amount paid per hour is determined by the type of technology and the size of the system. The table below shows the levels of tariff available for all the renewable energy sources and sizes of systems.
The Export Tariff:
You earn an additional fixed income for every kilowatt hour of electricity you generate and sell back to the grid. A 'floor price' has been set in the legislation at 3p/kWhr. You are entitled to receive this and it is index linked to the retail price index. However, you also have the opportunity to opt out of this fixed price and try to negotiate a better rate with your electricity supplier.
in the initial years before Smart Meters are widely used, the export element will be 'deemed' to be 50% of the power generated by the system.Once a system has been installed and registered for the Feed-In Tariffs, the tariff levels are fixed and subject only to index-linking for inflation
The bit you still buy from your electricity supplier
When you can't generate enough electricity for your needs you still buy electricity from your utility company at the normal rates but it will be much less electricity than you currently buy.
Tariff Levels
The level of the generation tariff is dependent on the technology used, the system size and whether it has been installed as part of a new build or installed on to an existing property (retro fit). The FIT scheme also provides two further benefits: an additional payment for surplus energy exported to the grid and a saving on energy purchased from your supplier. Once a system has been registered, the tariff levels are guaranteed for the period of the tariff and index-linked as described above. For systems registered in future years, the starting point of the value of the tariff will be less. For household customers producing energy mainly for their own use, the tariff income is also free from income tax.