Learn about the latest solar electric panels and feed in tariffs currently available to help you complete a solar installation investment.
The basics
Under the scheme, homes with pv solar panels will be paid 21p for every kilowatt hour (kWh) of electricity produced and the annual payments are free from income tax and are index linked.
Generate and sell energy and join the growing army of investors installing solar panels.
- Government backed scheme allows you to sell power to your supplier.
- Solar electric scheme pays solar electric panel owners for the power they produce.
- 25 years tariffs life with 30-40 years panel lifespan.
- Available to UK home owners.
- Tax free and index linked.
Who qualifies for the Feed in Tariffs?
Home owners who have solar panels fitted after April 2009 and have a 1-4 kW sized system will qualify for the feed in tariffs scheme. Ofgem will oversee the administration of the scheme with your current energy supplier responsible for paying the annual payment to you directly.
How much will I earn?
You will be paid 21p per kWh of electricity generated by your pv solar panels. An average 2.5kW south facing solar panels installation could offer a homeowner a reward of up to £600 and save them £140 a year on their electric bills.
The pay-back time to recoup an average investment of £10,000 would be around 10-14 years as a result of the feed in tariffs. On a technology with a lifespan of 30 to 40 years this is certainly a great long term investment opportunity with 10-11% annual return (An average bank account gives you 3% annual return on your money). You will reduce your household fuel bills in the long term, thus protecting yourself from future energy price rises and reducing your carbon footprint.
Did you know - Investing in solar panels reduces dependence on increasing energy costs with an additional increase to your property value.
Why are the Government doing this?
Governments around the world are introducing the same or similar type of schemes because they have been set strict targets to meet with commitments to reduce national carbon emissions and secure future energy supplies. As 55% of the UK's CO2 emissions come from domestic energy use, it is easier to bring this figure down rather than upsetting UK industry.
By making small scale micro generation systems a more attractive proposition for householders, it is hoped this will initiate a speedy take up of solar panels which anyone can see nowadays has been succesful. The domestic rate of 21 pence will be available for a limited period of time in order to incentivise homeowners to enter the scheme, but make the change sooner rather than later to take advantage of this rate.
Will the amount you earn change?
The feed in tariff scheme is indexed linked, which basically means the payment rate will rise in line with inflation so the rewards you receive will never be devalued over the long term.
Government Guarantee
The Government will guarantee your feed in tariff payments for 25 years. This will leave plenty of time to recoupe your original investment money and still have many years to benefit from the pure profit after that. The necessity to act quickly will make payback significantly quicker over the 25 years. This long term income adds weight to the belief that investing in solar panels may add value to and improve the saleabilityyour property if you should need to move over the next 25 years.
Where’s the catch?
The Government do not directly fund this scheme but raise funds through a general increase in electricity prices to all UK households. The feed in tariffs scheme prompts people to act quickly and install solar panels whilst it makes perfect financial sense.
How to apply
Simply, you apply for the feed in tariffs through your MCS accredited solar installers. Get a quote and your chosen installer will commission your new solar system and give you the relevant paperwork to give to your current energy supplier, Easy!
Quotes from MCS solar installers >>Why apply today for the feed in tariff?
The idea behind the feed in tariffs scheme is to encourage people to act now. By acting now you will get the best financial reward on your solar panel installation. This is an incentive scheme to get more people to install panels sooner rather than later.
Earlier adopters will receive more reward than later adopters.
Why today, not tomorrow?
The scheme is designed ultimately to reward earlier adopters the most and later adopters the least.
Be aware also, that global demand for this type of technology is huge, so price increases for the technology, due to massive global demand, will push up prices in the future, giving another reason why it has never been so good to install solar panels now.
Ask our MCS solar installers for details:
Learn about PV solar panels >>Solar panels quotes
Solar panels including installation quotes are as easy as 1, 2, 3.
Simply click on our 'Get a quote' button and arrange a FREE home survey and consultation appointment which should last around 1 hour. Appointments with questions and answers sessions may take longer.
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Expert & Author - Stuart Lovatt
Want to reduce fuel dependence? This is probably the closest you will get.
