Investing in Solar PV (photovoltaic)
When you invest in a Solar PV installation for your home you will be generating green electricity which you can use for free in the home. You will also receive the Feed In Tariff (FIT) for all the electricity that you generate. The combination of this will show a great return on your payment for the system.
On average a 4kWp PV system mounted on a South facing roof could generate approximately £500.00 per year. The initial cost of the system usually takes no longer than 9 years to pay itself off. After this period the payments that you receive will be entirely profit.
You will also be receiving lower electricity bills and protect yourself against rising energy bills in the future. The return on your initial investment could be approximately 10% a year.
Is my home suitable?
In general most homes in the UK are suitable for a Solar PV System. Roof size, orientation, roof pitch and shading issues will dictate how much your system will generate.
The ideal roof would be South facing between 30-40 degree pitch and have no shading
A 4kWp system on a roof South facing with a 30 degree pitch can generate approximately £500.00 per year
A 4kWp system on a roof East or West facing with a 30 degree pitch can generate approximately £400.00 per year.
Ideally there should be no shading on the roof area for the panels.
How does solar PV work?
The solar panels are installed and will produce electricity, converting day light (enhanced by sun light) via an inverter. This electricity passes through a generation meter, which records the total amount of electricity generated by your pv system. You will be paid the Feed In Tariff based on readings from this meter. The electricity is then fed to your fuse box for you to use free, instead of buying from your supplier, therefore saving on your electricity bills. Any electricity you do not use is automatically sold back to your supplier, this is in addition to your Feed In Tariff payment.
Feed In Tariff
The Feed-in Tariff is a government-backed scheme to encourage homeowners to generate green electricity. The scheme offers payments to homeowners for energy produced by their solar PV system. The payments are tax-free, guaranteed for 20 years and increase in line with inflation.
How does it work?
You are paid for all of the electricity that you produce
This is called the Feed-in Tariff and means that your energy supplier will pay you a set rate for each unit (or kWh) generated, whether you use it in your home or not.
Receive extra payment for power that is exported back to the grid
The Export Tariff has been set up so that you can sell back to the grid any electricity that you do not use.
Cut your energy bills by using free solar electricity
The average home will use around 50% of the energy produced by a PV system. This is dependent on lifestyle and the more that you use your free electricity, the greater the reductions on your energy bills.
The Annual Benefit
When using electricity in your home you will firstly use the electricity that your system is producing, if at some point you use more electricity than the system is producing then you will import electricity from the grid paying your energy provider as usual. The difference being that you will use considerably less electricity imported from your supplier, therefore reducing your electricity bill significantly. As energy prices continue to increase, Solar PV continually to prove itself to be a sound investment as it will protect you from the rise in energy prices. As the energy prices increase your savings will also increase.