more about solar energy and the energy crisis

What is our government doing?

With a growing concern for the environment, rising costs of energy, and huge competition for remaining non-renewable energy, it is a real possibility that we’re entering into a global energy crisis because of our dependency on fossil fuels and our continual production of catastrophic amounts of carbon emissions.

Feed In Tariff 

The UK Feed In Tariff (FIT) is due to commence from April 2010.

This Clean Energy Cash Back Scheme as the Department of Energy & Climate Change (DECC) refer to it, will provide a revenue stream for a period of 25 years from when your Solar PV system is installed.

The pay back rates were confirmed on Monday 2nd February 2010 and can be seen in the table below. Most domestic installations fall in the 41.3 pence category. The maximum number of modules you could install to remain in this payback bracket would be 26 x 180w. Any more would mean that you would fall into the next category which would result in a payback of 36.1 pence per kWh.

The UK FIT is generation based not export based, which basically means that financial reward is earned at the point of generation rather than through any surplus electricity that may be exported back to the grid. The UK FIT does reward export, however, unless you have an ‘old style’ meter in your home or have a commercial property, the export benefits are minimal and not really worth pursuing on a domestic property.

Therefore the main benefits are:

• Payment of FIT at a rate of 41.3 pence per kWh generated that you will use in your home.
• Reduced electricity imports resulting in much cheaper energy bills.
• Contribution towards reducing climate change.

 Tariff Levels for electricity financial incentives

• Number of Solar Panels: 12
• Generated kWh p.a.: 1800 (based on SAP calculations)
• Current ROI p.a.:  7.9%
• Revenue/Cost Savings*: £995.00
• Sales Price including VAT:  £12,600.00
  

1. *Revenue cost savings based on projected F.I.T. figures of 36.5 pence plus 14 pence per unit of electricity at current costs