Financial Benefits of Solar PV panels
Over recent years more and more people have become concerned about the rising cost of energy. This coupled with concerns about carbon emissions has led to a huge increase in the number of people installing solar panels or other renewable technologies on their property. The initial cost of installation of the solar pv systems can be several thousand pounds. However the installation costs can be reduced or recouped much more quickly through various government schemes designed to encourage people to adopt solar, wind or other low carbon options to provide their electricity.
Feed in tariffs and export tariffs
To encourage uptake of renewable technology the government has introduced certain incentive schemes. The Feed-in tariff (also known as the clean energy cashback scheme) scheme began in 2010 and ensures households who produce their own energy receive regular payments. The scheme works by energy providers paying you a set rate per unit for all the energy you produce regardless of whether you use it or not. The rate paid by the energy supplier is set for twenty five years for solar power and twenty years for other renewable technology. Government figures suggest an average household will receive £900 to £1,000 a year on average through the feed in tariff scheme. In addition any excess electricity you produce which is exported back to the national grid will be bought by the electricity suppliers under an export tariff. This export tariff creates further earnings by the household in the region of £40 - £60 a year. These tariffs are on top of the reduction in your electricity bills you achieve through producing your own energy.
Renewable Heat Incentive
From July 2011 the Renewable Heat Incentive (RHI) will be available to individuals and businesses. This incentive payment is also designed to encourage people to switch to renewable fuels from fossil fuels. The first phase of this payment is called the RHI Premium Payment and will be a one off payment for installation of low carbon equipment such as solar thermal panels. The difference from the Feed-In tariff scheme is the payments are made by the government not electricity suppliers and there are no export payments. The second part of the incentive will be will be the RHI tariffs and these will be available from October 2012 to provide ongoing tariff support for households with the tariffs fixed for at least 20 years
Other grants and discounts
Other government grants and discounts on these new technologies are available. To help you find out if you are eligible for a grant the Energy Saving Trusts impartial website has a grants and discounts database where you can check what you are entitled to. The Trust also provides expert no-obligation advice over the phone to help you decide which offer is best for you.
