If you choose to install solar panels on your property, you can benefit from the Feed In Tariff scheme created by the government to increase the use of renewable energy sources. In a nutshell, when you put solar PV panels on your home – either on your rooftop or in a standalone installation, you can cut your energy costs and receive payments for the electricity you generate. This simple explanation can help you understand how you can benefit from choosing to use renewable energy from the sun to help power your home.
Three Ways to Benefit from Solar Panels
There are three ways you can benefit when you install solar panels on your property and register for the feed in tariff (FIT) scheme. Essentially, you will be paid for each unit of energy generated by your solar PV panels, as well as save money on your energy bill each month.
Generation Tariff
For every unit of electricity you generate – measured in kilowatt hours, or kWh – your energy supplier will pay you a rate that is set and published by the government. The tariff levels are guaranteed for up to 25 years, and are linked to an index to ensure that they keep pace with inflation. You’ll be paid that rate whether you use the energy generated by your solar panels or export them to the energy grid.
Export Tariff
In addition, you’ll get an additional tariff from your energy supplier for each kWh you export back to the electricity grid. The current export tariff is 3.1p/kWh, over and above the generation tariff. Eventually, solar PV systems will include a smart meters that will measure the amount of energy you export. Until smart meters are available and installed, the export tariff will apply to 50% of the energy you generate.
Savings on Your Energy Bill
Finally, you’ll see a reduction on your energy bill because you’ll be importing less electricity from your energy supplier. Every kWh your solar panels generate is a kWh you don’t have to pay for. The amount of your savings will depend upon the amount of energy you typically use and the amount your solar installation generates.
Typical Energy Savings with Solar PV Systems
The Energy Saving Trust estimates that the typical domestic solar electricity system (2.9kWp) could give you a total savings of £1,190 annually. The breakdown includes £1,060 from the Generation Tariff, £40 annually from the Export Tariff and £90 energy savings.
Your energy savings will vary, depending upon your energy use and the amount of energy your solar panels generate. A local solar panel installation company can give you more information and help you estimate how much you could save if you choose to install solar PV panels on your property.
The FIT has in many ways become a victim of its own success, with over 90,000 installations since last April and a 900% growth in the country’s solar power potential since subsidies were introduced. In addition, a huge industry has grown up around solar PV which is creating thousands of jobs at a time when most business sectors are in decline. In the past 12 months alone the number of people working in the industry has jumped from 3,000 to 26,000. This decision therefore, goes against many of the government’s own environmental and job creation policies.
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