SOLAR BLOG
Government in move to boost solar PV for homes and small businesses
The Government have outlined proposals to shore up support for smaller developments of solar panel installations. The news comes amid concerns that a reduction in the tariff could stall the take up of solar PV across the country. Under the proposals, financial support will be protected for installations of below 50kW, empowering homes and communities to continue invest in the technology. A reduction in the rate of Feed In Tariffs (FIT) to larger projects, also ensures the allowed subsidy will not get diverted to finance private organisations.
Most households have an average output of 2.5kW, where the FIT rates are presently set at between 36 and 41 p/Kwh. As such, the income received pays for the installation over an average period of 10 years, whilst a significant additional income could be generated after this. By maintaining this level to smaller projects, it is hoped that the take up of small scale solar PV will continue at the impressive rate it presently enjoys.
The announcement will be seen as welcome news by both the industry, and SMEs, and families looking for the best approach to improve their green credentials.
However, as constant reviews of the FIT scheme are planned, the existing tariffs cannot be guaranteed. Presently, the plans are only to reduce the amounts paid for larger installations but, with similar schemes across Europe seeing their tariffs reduced, smaller projects could be affected in due course. Whilst the announcement is certainly good news, those wanting to make the most of the benefits on offer, are likely to be contacting their nearest solar panel company at the earliest opportunity.
Bright investors should look to solar panels
Understanding how solar panels for your home work is something which many people do not fully understand. However, with the uptake of installations across the UK increasing all the time, it is becoming an area which many young and environmentally conscious families are looking to. There tend to be two main types of solar panels; thermal and photovoltaic (PV). Thermal panels work primarily to heat water supplies, though they can also be used to provide heat throughout a home. Solar PV panels on the other hand can be used to provide electricity and, are one of the leading solutions to moving away from the reliance on fossil fuels.
With Ofgem warning homeowners that year on year fuel price rises will see electricity bills increase by 20% by 2020, solar panel installations to provide electricity make perfect sense. However, the benefits are far wider reaching than bill reduction alone.
Early investors in Solar PV will not only see their electricity bills fall, but could generate an income. Any surplus electricity produced can be sold back to the grid under the Government’s Feed In Tariff (FIT) scheme. At present payment rates, installation costs could be repaid within a decade and from there significant profits seen.
Whilst reviews of FIT will be seen, and payment rates adjusted, homeowners will be protected from major cuts. In any case, any cuts are likely to be introduced over an extended period of time whilst owners of solar panels will be able to benefit from reselling their electricity on an ongoing basis for a great many years.
UK Coalition finally reveals its Renewable Heat Incentive plans
After months of waiting, the UK Coalition Government has finally revealed its Renewable Heat Incentive (RHI) plans. The scheme, which is integral to reducing the country’s reliance on fossil fuels, sets out the plans for paying for the generation of greener alternatives.
However, for those families looking to invest in greener energy alternatives, payments will not be forthcoming until late 2012. Payments will also be made to those who have had eligible installations since July 2009, but the exact tariffs are not known and the schedule for back payments in this regard also remains unclear.
However, there is some good news; the RHI Premium Payment plan will assist the installation of renewable energy technologies. However, there will be eligibility criteria which need to be met, which will no doubt prolong the payments being received further still.
Included in this will be an assessment of a home’s energy performance. Further than this, homeowners will also be required to give constant feedback as to how the equipment is performing, whilst it will only apply to those presently drawing their electricity from the national gas grid.
It is not exactly clear which alternative fuels will qualify for the scheme either. In addition to this, with a review of the Feed in Tariff, (FIT) yet to come too, the situation for families wishing to go green remains unsettlingly vague.
As it presently stands however, it is clear that solar panel installations will remain eligible for payment. With the FIT review upcoming however, solar panel companies are urging those considering installation to act quickly, to ensure that they, as well as the planet, can profit.
Smallholders increasingly encouraged to go green in light of rocketing oil prices
With much being done to heighten the awareness of the importance of being green, the smallholders of Britain are being urged to harness renewable energy sources in order to hit targets set by the Government. Though the focus is clearly on positively affecting the environment, families up and down the country can benefit from great financial benefits too. The cost of oil has seen a sharp rise in recent weeks due to unrest in Libya, and the coalition Government’s plans to introduce a fuel duty increase in April will affect the size of energy bills and general cost of living in households all over the UK. With this in mind, the popularity of home solar panel installations is on the increase.
The installation of solar photovoltaic (PV) reduces the amount of electricity drawn from the grid of course. Further than this though, it pays households for anything sold back to the grid under the Government’s Feed In Tariff (FIT) scheme. The Government recognises that there are a growing number of smallholders in the country could benefit a great deal further than this though. Many parts of the UK have great potential to exploit the technology, and any south facing roof, be it on a house, barn or chicken coop could be used.
The upshot of this could mean a significant extra income for those with small farms, whilst the reduction in the carbon footprint of the household will be noticeable. Installation costs vary of course, though should begin to pay itself within the decade.
By 2020, the UK needs to be generating at least 15% of its energy through renewable resources. As one of the leading ways to produce electricity in an efficient and clean way, solar panel companies are campaigning for the Government to promote the technology.
The dawn of smaller panels sees the rise of solar homes
Domestic solar panel technology is advancing all the time; more so than any other home renewable energy solution. Strengthening the industry further, a recent development has seen mass production commence on significantly smaller panels than has been available previously.
The news is one that many young environmentally conscious homeowners have been waiting for. Opening up the possibility for solar energy to power more homes than ever before, those living in bungalows, cottages and new builds could start to benefit.
On full sized solar panel installations, savings of up to £1000 pa can be seen through reduced energy bills and contributions received through the Government’s Feed in Tariff (FiT). These smaller systems could save households somewhere in the region of £600 in much the same way.
The size of income generated by the installation of solar panels will naturally vary from home to home, dependent on a number of factors such as personal use and surplus generated. On average though, it is expected that the installation should have paid for itself in a decade.
The cost of installation is high, but for many the thought of very cheap or even free electricity bills for themselves plus an on-going income means it is worth it. For those considering solar panel suppliers, choose one that does not use high-pressure selling tactics.
Developments in PV do not stop here though. With new technologies allowing energy to be produced on lightly overcast days too, the viability of such systems is beginning to extend to more and more parts of the British Isles.
Rates paid for solar PV electricity set to increase from April
Homes that have solar panels installed to provide clean, efficient energy will soon benefit from an increase in the amount paid for the electricity that they generate.
The Feed –in Tariff (FIT) scheme was introduced in April 2010 by the Department of Energy and Climate Change to encourage small scale production of low carbon energy.
The current feed-in tariff, or rate paid for electricity that is generated, regarless of whether it is used locally or fed back into the National Grid is 41.3p per kilowatt-hour (kWh). However, from April 1st, this rate will increase to 43.3p per kWh. This change incorporates the expected rise in the Retail Price Index (RPI), and applies not only to new customers but to homes already fitted out with solar panels.
It is hoped that in light of spiralling costs of fuel that have recently hit UK households and increasing environmental awareness, this will encourage more property owners to opt for solar panel installation.
The tariff is obtainable through electricity suppliers, and is designed to guarantee an income for households fitted with small-scale photovoltaic (PV) systems. It is exempt from tax, and applies for 25 years after the system is fitted by solar panel installers. The payments are designed to increase in line with inflation, and the average property can expect to see a return on investment of around 12 per cent once the new rate takes effect. This is an improvement of 30 per cent on the 9 per cent rate of ROI which was normal a year ago.
