The Government Generation Tariff

The Generation Tariff allows you to earn a fixed, tax free income for every kilowatt hour of electricity you generate, even if YOU use it. The Export Tariff generates an additional fixed, tax free income for every kilowatt hour of electricity fed back to the grid. There will also be a reduction in your fuel bills, which you currently pay tax on.

Is is still worth investing in domestic Solar Panels?

There has been a lot in the press about the cut in the Feed in Tariff (FIT) in the UK. This is probably putting people off.

The main reason for the cut is that the return on investment became so enticing, due to the rapid price reduction of solar panel manufacture, that the funds set aside by the government were rapidly running out.

The revised scheme proposes the reduction on installation of 4kW or less from 37.8p/kWh to 21p/kWh and on >4-10 kW installations from 37.8p/kWh to 16.8p/kWh.

The revised scheme still allows for a return on capital of 4.5% on installations up to 4kW and 5% on larger installation over 5kW.

Under the proposals, the new tariffs would apply to all new solar PV installations with an eligibility date on or after 12 December 2011. Such installations would receive the current tariff before moving to the lower tariffs on 1 April 2012. Consumers who already receive a FIT will see their existing payments unchanged, and those with an eligibility date on or before 11 December 2011 will receive the current rate.

3 ways to benefit from PV and the FIT.

1. Generation tariff - you will be paid a tariff - at a rate set by your energy supplier - for each unit of electricity you generate, for a period of 25 years, in the case of PV.

2. Export tariff - you will receive a further payment per kWh from your energy supplier for each unit you export back to the electricity grid.

3. Energy bill savings - you'll use less electricity taken from the grid.

How much will you make? How much CO2 will you save?

The Energy Saving Trust suggests that for a detached house facing west in the south of England with a monthly electricity bill of £50, you could supply 66% of the annual electricity yourself!

The first year income would be a total of £714. £580 from the Feed-in tariff, £93 saved on the bill and £41 income from grid export.

The total net benefit (over 25 years) would be £949.

On top of that you could save 32.8 Tonnes of CO2!

Energy Prices are exploding. Act now!

EDF are the final energy company to raise prices by 15% this year. Protect yourself from further price rises by investing in your own Solar Power plant. The government guarantees your income for 25 years

But the UK is so dull!

Solar Panels work on dull days as well as sunny days because the system relies on daylight not sunlight and so is suitable even in the uk.

Isn't it a bit of a bind?

The system requires the householder merely to reap the benefits. Minimum ongoing maintenance and the system is wired to a meter that records all the electricity generated, used and exported.

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