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PV solar panels and incentives

"Feed-in tariffs for PV solar panels have significantly increased take-up. There's no-doubt that solar technology remains an exciting prospect for households looking for a permanent solution to the problem of expensive energy costs."

Incentives for PV solar panels.

In a nutshell.

This emulates the very successful feed-in tariff scheme from Germany. This has grown the German solar technology industry into one of the largest and most successful today.

Despite Germany's similar climate to the UK's, it now nationally exceeds its power requirements thanks to power from the sun.

The popular solar electric tariff.

Applicants for the Clean Energy Cashback Scheme will receive 4.39 pence per kWh of electricity produced over 20 years. This will deliver a tax-free return of investment of around 5% - even if you use the energy yourself.

More financial savings can be expected when used alongside an EV charger and free motoring mileage.

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The additional solar heating tariff.

Applicants for the Renewable Heat Incentive Scheme will receive 19.2 pence per kWh produced, giving you a guaranteed eight years of income from this type of technology.

However, it would be more useful to install PV solar panels alongside a heating converter to heat your tank, rather than installing a traditional solar heating product. This will increase the benefits you'd enjoy, especially with EV charging and battery storage capabilities.

Today, PV contributes 30 years of:

Free electricity day and night.
Free hot water day and night.
Free motor mileage with an EV (electric vehicle) day and night.
Pride in your astute foresightedness.

All this for the price of a quality 'second-hand' car and it's never made more sense in this crazy world we live today.

Sunshine on a cloudy day.

Common questions about solar panel tariffs

Which type of tariff is best for me?

Because household needs across the United Kingdom may vary, there can be many factors, which determine suitability to a tariff. A free consultation may help determine which is best for you.

What other benefits are there?

Both tariffs are available to both domestic and commercial projects. This is a significant investment opportunity for your protection from long-term escalating energy costs.

The income you receive from your panels incentives is tax-free.

In addition to the payments and energy savings, the scheme is designed to be index-linked which means the payment value will not be affected by inflation long-term.

The feed-in tariffs last for 20 years, however, both types of solar panels have a much longer lifespan, usually between 30-40 years, giving you a powerful way to protect your household from longer term spiralling energy costs. You can usually make your money back in between 8-10 years and then enjoy the rest of the 20 years of tariff payments and free power.

How often will I receive the tariff payments?

This can be arranged with your current energy supplier who will be sending you the payments. This can be arranged as annual or quarterly payments. It is a great feeling to receive, instead of having to send, a cheque from your energy company.

What happens to the tariff if I move home?

Panels on your roof (as long as you own them) make your home extra more saleable. You can easily transfer the tariff over to your home's new owners with one phone call.

How are these funded?

Calculations show that income tax, VAT and corporation tax from the UK's solar panel industry brought in around 330m GBP last year, while the feed-in tariff scheme cost just 110m GBP.

In addition, the government raises funds through both a small increase in electricity prices to the typical customer and further European funding. These expenditures are part of the money the government has already set aside to meet legally binding global warming obligations.

Who is doing this?

You may think that this technology is specifically a domestic technology, but not so, say government officials with predictions that there will be 13,000 installations and 110,000 installations in the commercial and public sector and supply twenty-five percent of the heating or power needed in these sectors while creating 150,000 jobs by 2020.

Myth busted.

Figures from the Department of Climate and Energy show in 2008/9 Scotland, where the biggest adopter of solar panels, with Yorkshire, takes the title in 2010/11. This should finally put to bed the common misconception that this technology doesn't work well in the UK climate.

The next step

A nationwide network of trusted installers has come together to offer industry-leading technologies at reasonable prices for your peace of mind.

Today's solar panels come in a variety of different types, sizes and configurations, so ensuring you get the best suitable system is paramount.

We discuss your options so you will get the maximum benefit from this brilliant and underestimated technology.

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All our MCS solar panel installers are RECC scheme (Renewable Energy Consumer Code) members and work throughout England, Scotland and Wales.

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Stuart Lovatt
Founder of Power My Home.


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