Frequently Asked Questions About FiTS for Solar Panels

Few government policies and policy changes have sparked as many questions or as much confusion as the recent changes to the FiTS for solar panels. Part of the problem is that the changes are still under contention and subject to final decisions of the UK courts. A larger part of it, however, is down to the many unscrupulous solar PV installers who are intentionally obfuscating the answers to boost their sales. Here’s the scoop on some of the most frequently asked questions about solar panels.

What Are the Feed-in Tariffs?

There are two feed-in tariffs covered by the scheme. The Generation Tariff pays a fixed amount for every kilowatt hour of electricity generated by solar PV systems of less than 5MW size, whether the electricity is used by the owner of the solar panels or exported. The Export Tariff is an additional payment for every kWh of electricity that is exported to the grid instead of being used on site.

Does the Government Make Payments to Me?

The payments are made by your electricity supplier. The major electricity suppliers are required by law to participate in the FiTS, but some smaller suppliers may not. Check with your energy supplier to find out if it participates.

How Does My Supplier Determine How Much Energy I’ve Exported?

Eventually, every solar PV installation will have a special smart meter that measures the electricity you export to the grid. As a short term measure, the energy companies are allowed to estimate an average export level and make payments based on that.

How Much Are the Feed-In Tariffs?

This is where the confusion comes in for many people, thanks to the recent changes to the FiTS. The breakdown is:

Solar PV systems registered before 12 December 2011will receive 43.3p kWh for 25 years.

Solar PV systems registered 12 December 2011 through 2 March 2012 will receive 43.3 kWh for electricity generated until 31 March 2012 and 21p/kWh for electricity generated after that date for 25 years.

Solar PV systems registered 3 March 2012 though 31 March 2012 will receive 43.3p/kWh until 31 March 2012 and 21p/kWh from that date on.

Solar PV systems registered 1 April 2012 through 30 June 2012 will receive 21p/kWh if they have an EPC band D or above or 9p/kWh if they have a lower EPC rating.

The government is proposing to reduce the tariff rate again as of 1 July 2012, with the rate to be determined but expected to be in the range of 16.5p to 13.6p/kWh. Systems installed before that date will continue to receive the rate in effect at the time their system was registered.

Will I Pay Taxes on the Tariff Payments?

No. FiTS payments are tax-free and guaranteed at the rate in force at the time the system was registered for 25 years.

The FiTS is a powerful incentive to choose solar panels as a source of alternative energy. Check with a local installer of solar PV systems to find out just how much you can benefit from it.

The Best Advice on Solar Panels in the UK

While the Feed-in Tariff scheme has sparked a great deal of interest and thousands of installations of solar panels in the UK, it has also raised many questions about the benefits of solar PV and the benefits of solar panels on a personal level for homeowners across the country. If you are considering a solar PV installation to supplement your energy needs and provide income through the FiTS, there are certain steps you should follow.

Learn About Solar PV Systems

Before you start shopping around, educate yourself about the various types of solar PV systems and solar panels on the market. Get a feel for reasonable installation prices in your area and check the level of energy generation you can expect from different sizes and types of solar panels. The Solar Energy Calculator at the Energy Savings Trust website is a useful tool for this.

Schedule an Energy Assessment for Your Home

As of 1 April 2012, your property must have an energy efficiency rating of D or better in order to qualify for the full FiTS. The Department of Energy and Climate Change notes that many properties in the UK already meet that requirement. Many more can meet it with minor changes or energy savings measures that cost less than £500. Have your property surveyed in advance of shopping for solar panels to learn if you must do anything to meet the FiTS standards so that you can apply for the scheme as soon as your panels are installed.

Get Solar Quotes from at Least Three Installers

Shop carefully for the best solar panels and solar PV installers in your area. In order to qualify for the FiTS, your system must be installed by an MCS-certified installer, so be sure the ask about certification and check to make sure that the installers you interview are actually certified. Get at least three quotes from different installers and compare them to each other, checking references as well as prices, to choose the best fit for your needs.

Register for the FiTS

Once your solar panels are installed, ask your installer to register you on the MCS database. Once he has done that, he will send you a certificate of confirmation. When you have the MCS certificate in hand, send a completed application form, the MCS certificate and your EPC certificate to your FIT electricity supplier to be registered to receive payments.

Installing solar panels on your rooftop can benefit you in many ways. Take the time to ensure that you do everything right so that you can reap all of the benefits of your new solar PV installation.

Anatomy of a Solar Panels Installation Consultation

Before a solar PV installer even pulls out a hammer, the company will do a full and detailed site assessment to help determine the best size, location and configuration for your solar panels. The assessment has several parts and will result in a detailed site analysis and a quote on the best solar PV system for your needs. If you’re considering installing solar panels for your property, here’s what the surveyor will be looking for when he comes to assess your property for installation.

Location of the Solar Panels

In general, the best place to install solar panels is on a pitched roof, but there are exceptions. In some cases, there’s not enough roof space but the property does provide an appropriate place for a free-standing solar PV installation or is suitable for a wall-mounted installation.

The solar surveyor will be looking for an existing roof that faces south, southeast or southwest and that is pitched between 15 degrees and 45 degrees. A flat roof often provides the most flexibility. In either case, the surveyor can design or recommend a system that includes frames to position the solar panels at the perfect angle for your location.

The roof must also be large enough and sturdy enough to support the solar panels arrays that are the right size for your intended system. Or, more to the point, the size of your roof will play a major role in determining how much capacity your solar panels will deliver. Larger solar panels can generate more electricity. Likewise, more expensive, smaller arrays may also generate more electricity than larger, less efficient solar panels.

Mounting Options for Solar Panels

The solar surveyor will recommend a solar PV system that will collect optimal levels of the sun’s energy at your location. He may, for example, fit the panels directly to the roof if it provides an acceptable pitch. If the roof is too flat, the solar array may be mounted on an angled frame to position it at the best angle for collecting the sun’s rays. The solar PV designer will use information you provide along with his own observations to decide how to best configure your solar modules and mount your solar panels.

Shade and Obstruction Free

In addition to the right orientation and pitch, the surveyor will study the area around your property to determine if there are structures, trees or other obstructions that will cast shade on the location for the solar panels. Any shade will reduce the efficiency of the installed solar PV system because the panels generate electricity from the sun’s rays. If a shadow prevents the rays from hitting the solar array for part of the day, you’ll lose a portion of the surface area that could be generating electricity.

Once he has finished the survey, the solar installer will provide you with a detailed quote and answer any questions you may have. Most experts recommend that you get at least three quotes from solar panels installers before making your decision.

Is It a Good Time to Invest in Solar Panels?

The answer to this common question depends on whether you’re planning to invest in a solar PV company or wondering whether it’s a good time to install solar panels on your rooftop. According to U.S.-based Bloomberg News, there’s surplus inventory of solar panels and a drop in demand, contributing to further steep price cuts. If you’re planning to buy stock in a company that makes or sells solar panels, that may not be the news your want to hear. If, on the other hand, you’ve been holding back on your decision to install a rooftop solar PV system, lower prices could make your decision a lot easier.

What Lower Prices for Solar Panels Means for You

The most obvious effect of the dropping prices for solar panels and installation of solar PV systems is that you can get some real bargains if you choose to switch to solar energy now. Prices have been dropping significantly for a couple of years, and each price drop has sparked new users into jumping on the solar bandwagon and quite literally hitching their wagons to a star.

The price drops also prompted the government to reconsider the level of their current tariff support for solar panels. Because the cost of installation had dropped so steeply since the FiTS was established, the government said, the tariff was far more generous than planned and had drawn customers into the market much faster than expected.

The rapid adoption rate endangered the tariff program, the government explained, and forced earlier adjustments to the rate than planned. Thanks to the publicity surrounding the tariff adjustment, many people walked away believing that it’s really not profitable to install solar panels any longer.

Nothing could be further from the truth. In fact, the government’s adjustments to the tariff plan include scheduled reviews of the rate and decreases when necessary to keep the returns on new solar PV installations within the expected parameters. Qualifying installations of solar panels are expected to return enough in tariff and savings to completely repay the cost of installation within 7 to 10 years.

However, the tariff payments will continue to be paid for a full 25 years – at the rate originally promised when your solar panels were approved for the programme. Depending on the efficiency of your solar PV system and the amount of electricity it generates, you could conceivably earn £1,000 annually from the FiTS.

If you wait for the prices for solar panels to come down further, however, you risk reducing those payments and your eventual profit.

The profit on tariff payments are in addition to the savings you’ll realize by using electricity generated by solar panels. Keep in mind that those savings will continue even after the FiTs is finished.

If you’re considering solar panels but were hesitant because of the controversy surrounding the tariff rate, consider the whole picture. Solar PV is still one of the best investments you can make with your energy dollars.

Important Answers About Solar Panels for Homeowners

Deciding to install solar panels is a big step for a homeowner. While most advice you’ll read focuses on solar panels and the benefits for your electric bill, a homeowner must also take into account the effect of the solar PV system on his home and its value. Knowing the answers to some basic questions can help you make your decision and choose the best solar PV system for your home.

Will Solar Panels Increase the Value of My House?

If you own the solar PV system, most experts agree that solar panels will increase the value of your home and make it more attractive to buyers. A solar PV system promises lower electricity bills, which is always a selling point, and if the FiTS certificate is included in the purchase of the house, it can be an added incentive to buyers who are considering a purchase.

Keep in mind, though, that you’ll benefit most from installing solar panels if you are planning to remain in your house for at least the next 7 years. If you are planning to move house sooner than that, you may not recover your investment in solar energy.

Does That Include Free Solar Panels?

Actually, most real estate experts agree that free solar panels will decrease the value of your home and may make it more difficult to sell. When you opt in to a rent-a-roof scheme for free solar panels and free electricity, you are essentially entering into a 25-year lease with the solar panels company. That means an additional entity to consider during the sale and more complications. Buyers who want to take advantage of the FiTS will not be interested if they can’t own the solar PV system, which could eliminate part of your market.

Will Solar Panels Damage My Roof?

A qualified solar installer can install a solar PV system without damaging your roof as long as your roof is in good repair. A reputable firm will alert you to any issues with your roof and will not install the panels on a roof that can’t support them. Many of the concerns raised by homeowners about solar panels are based on misunderstandings of how the panels are installed or are addressed by the method of installation. Ask your solar PV installer about the possibility of roof damage and how they address it before you buy. His answers should reassure you.

How Much Maintenance Will a Solar PV System Require?

Solar PV is remarkably low maintenance. There are no moving parts to wear out and most solar panels are guaranteed for at least 25 years. After the first 10 years, you will probably have to replace the inverter – the electrical device that transforms the direct current from the panels to alternating current for household use. At today’s prices, that will cost you about £1,000. Aside from that, maintenance consists mainly of washing down the panels once or twice a year – less work than you put into cleaning out your gutters.

Solar panels represent an excellent investment in reducing your energy costs and, with the addition of the FiTS, can generate income for you over the course of 25 years. Shop carefully for the best deal with a reputable solar PV installer.

A Guide to Buying Solar Panels

Which solar panels should you buy?  When you decide to install a solar PV system, you’re making a commitment to purchase a product that you’ll be living with for the next 25 years. Aside from your house, few investments have that long a lifespan. Given that, and the size of the investment – the typical home solar PV system can cost £6,500 to £10,000 installed – you would think people would put as much thought and care into buying solar panels as they do into buying their next automobile.

Unfortunately, the factors that influence quality in solar panels aren’t as commonly and easily understood as engine sizes and fuel economy. The ratings are littered with jargon and industry-speak and numbers that make little sense to most laypersons. Here’s a brief overview of the factors that you should consider when deciding which solar panels to buy.

Wattage Ratings

The wattage rating should be a good guide to determining the output and power of solar panels, but it’s not as simple as all that. The nameplate rating on solar panels is arrived at under what they call “Standard Test Conditions”, which often bear little resemblance to the typical British seasons. Those conditions are considerably cooler than most real world situations – and solar PV efficiency drops considerably as the panels heat up. Instead of going by the STC rating, look for the PTC rating – PVUSA Testing Conditions. Those figures will give you an output rating that’s far closer to real world performance than the STC rating.

Power Tolerance

On the spec sheet for your solar panels, you see a listing called “Power Tolerance”. That figure represents the range of performance you’ll see based on the wattage rating. For example, a power tolerance figure of +/-5 on solar panels that are rated for 200 watts means that the panels will be able to output between 195 and 205 watts at peak power. That doesn’t sound like it makes much difference until you consider the effects across an entire solar PV array, which may consist of as many as 16 panels. If all of them are operating at 10 percent below the actual wattage rating, it’s a significant difference.

Keep in mind that solar panels with a lower wattage and tight power tolerance rating can actually outperform those with higher wattage and a larger range.

Performance Guarantees

Look for solar panels with a performance guarantee. Most reputable manufacturers will offer one that guarantees a minimum level of output over a fixed period of time. The most common guarantee is for 90 percent of the maximum output for 10 years and 80 percent of the maximum for 25 years.

Temperature Coefficient

Some manufacturers provide a number called a Temperature Coefficient of Power or TCoP. The figure tells you the percentage of power loss suffered by the solar panels for each degree above 0 C the solar panels reach. As noted above, solar panels lose efficiency at higher temperatures. The TCoP measures that power loss. Look for manufacturers who provide a TCoP rating, and choose solar panels with TCoP ratings of -0.5 percent or less. If there is no TCoP rating, expect that the panels perform more poorly than that in hot conditions.

When you talk with a solar PV consultant, ask about the solar panels used by his company for installation. Many companies buy their solar panels from only one source, while others offer solar panels from a variety of manufacturers. The more you know about the system to be installed the better able you will be to make the best choice for your needs.

Full EPC Level D Need for Solar Panels Tariff Going Forward

Starting 1 April, homeowners who wish to take advantage of the FiTS will have to ensure that their homes have an EPC rating of level D or better. The solar panels can contribute to the rating, however. If you intend to profit from the FiTS with a solar PV system, you may need to make other changes to bring your home’s energy efficiency rating up to level.

While the new requirement may sound scary, achieving a level D rating may not take much in the way of changes and investment. In fact, the government estimates that about 51 percent of UK homes already hold an EPC D rating without taking any measures. In addition, the solar panels themselves can make a significant impact on the EPC rating.

If your property is not up to the required rating, there are a number of things you can do to improve your level. If you are close to a level D, in fact, installing solar panels may put you over the top and qualify you. According to DECC, if you intend the solar PV system be counted toward your rating, you’ll need to install the solar panels and then have an EPC survey done.

One value of having an EPC evaluation done before installing solar panels is the list of recommended improvements supplied as part of your EPC. Those recommendations are tailored to your home and area and are the best measure for deciding which improvements you can make to increase your EPC rating. The recommendations are broken down by cost into those that cost less than £500 and those that cost more than £500. Some of the lower cost improvements will set you back as little as £15.

Low Cost Efficiency Improvements Can Help Qualify for Solar Panels Tariff

If you want to improve your chances for that all-important rating, these measures can improve your efficiency rating.

Replace all of your traditional light bulbs with energy efficient lighting choices. This can cost as little as £11 and yield considerable savings.

Use a programmable thermostat to control energy use for heating and cooling your home.

Insulate water and heating pipes to reduce heat loss and save energy used to heat water.

Install cavity wall insulation to reduce heat transfer through the walls of your home.

Protect against draughts with weather stripping and caulking to reduce energy used for heating. This may be the most overlooked and cheapest way to improve the energy efficiency in your home.

As noted, installing solar panels is a high value efficiency improvement and may be enough on its own to boost your EPC rating into the range needed to participate in the FiTS. If you have any doubts about your home’s energy efficiency, have an assessment conducted by a qualified assessor.

Beware of Shady Solar Panels Companies

Solar panels offer many benefits to property owners – clean energy, lower energy costs and, thanks to the tariff scheme, a steady income from electricity generation for 25 years. Unfortunately, the rush to install solar panels has brought many get-rich-and-run firms out of hiding to take advantage of consumers.

Even more unfortunately, many of these companies can fleece consumers, close their doors – disappearing with deposits paid for solar panels that will never be delivered – and open shop under another name to do it all again. The news website “This Is Lincolnshire” reported earlier this week about one such company that promised solar panels and took deposits after knocking on doors, then closed up shop.

At least one customer reported that he finally got his solar panels, but they were installed by another company that claimed to have bought the contract from the original group. Most of the Lincolnshire property owners, however, expect that they’ll never see their deposits again.

How to Avoid Dodgy Solar Panels Installers and Shady Solar PV Companies

The REAL Assurance Scheme aims to help homeowners avoid rogue installers, outright cheats and solar companies that do shoddy work. The organization, which is made up of solar PV installers, holds its members to high standards and requires certifications of all members listed on the REAL website. They also offer a number of tips to help property owners ensure that they contract for solar panels with legitimate, qualified solar PV installation companies.

Don’t do business with companies that come knocking at your door. Solar panels installers are jammed up with business. They don’t need to send people out knocking on doors or send out blind mail to your Inbox. Only do business with solar PV installation companies that you approach, and only approach those that are members of the REAL Assurance Scheme.

Check the Energy Saving Trust website for information about realistic costs and returns for solar panels in your area. You can enter your post code and other information and get an assessment of how much you can expect to gain from installing a solar PV system. That information will help you evaluate how truthful a salesperson is being with you.

Don’t sign with the first company that offers you a contract, especially if the company is pressuring you to close the deal immediately. Get at least three quotes from three different solar panels installers, and ask for references and testimonials from previous customers. Be sure to contact them yourself.

Always read any paperwork completely before signing it.

Only sign a contract with a company that holds a current MCS certificate.

The vast majority of solar PV installers are legitimate companies that install high-quality solar panels and systems. Use these tips to make sure you’re dealing with one of them.