SOLAR ENERGY PAYS!
No Catch! Get paid, lower your bills & reduce your carbon footprint.
Receive a Government backed annual payment of up to £900* Payment guaranteed for a 25 year period.
*Savings based on a typical 2.5kW unit – Source: DECC 01/02/10
- Save & make money on your electricity.
- Sell excess electricity generated back to your electricity supplier.
- Beat future electricity price rises.
- Reduce your carbon footprint by using renewable energy.
The background
After years of campaigning by environmental groups the government has finally agreed to reward households and businesses installing electricity-generating measures with enough of a return to make it a serious financial, as well as an environmental, investment. If you've got the money and, crucially, a sunny, south-facing roof, you can earn a tax-free return, an income that will rise in line with inflation. At the same time, you get to do more than your fair share in reducing the UK's carbon emissions.
Feed -in tariff
"The feed-in tariff will change the way householders and communities think about their future energy needs, making the payback for investment far shorter than in the past."
Anyone fitting a typical £12,500, 2.5kW PV system to their existing home will initially be paid 41.3p per kilowatt hour (kWh) generated. Enough, according to Miliband, to reward them with up to £900 in the first year on top of a £140-a-year saving on their bills.
Households get an extra 3p for each kWh they export on top of the 41.3p they get paid for all units generated. Those building PV roof panels into a new-build home get a slightly lower tariff (36.1p per kWh). The fact that the payments are not taxed make it a particularly rewarding investment for higher-rate taxpayers – those earning more than just over £43,000.
The feed-in rates change depending on which year you install the technology. They will also apply to installations commissioned since July 2009 when the policy was announced. Early adopters, who have installed grant-assisted PV and registered for the ROC scheme, will also receive payments, but at just 9p/kWh.
How you will be paid
The payments will physically come from your existing electricity supplier, but will be overseen by the regulator Ofgem. Jeremy Leggett, chairman of SolarCentury, the biggest supplier of PV systems to UK homes, says homeowners need a largish (8m2), unshaded, south-facing roof, or similar place to mount panels.
Into the future
Dave Timms, climate and energy campaigner at Friends of the Earth, says"For householders who have a south-facing roof, PV panels are really worth looking at. Not only are they a sound financial investment, they will also allow you to do your part in tackling climate change.
"Our homes are responsible for over a fifth of UK emissions, but by fitting renewable electricity systems and wind turbines, we can be part of a greener, safer future."
There is an expectation, he says, that once investors and banks see the benefits of the scheme, specialist loans or top-up mortgages will become available for those who want to install a system, but can't raise the capital.
