Solar Grants and Tariffs
Solar energy utilizes the suns energy by converting it into electricity or to heat water. The UK government has made it very attractive for commercial premises owners to invest in solar energy for their power and heating needs by introducing a number of grants and tariffs that actually pay cash to commercial solar investors. Solar grants disappeared as the government found more lucrative ways to incentivize solar projects. Feed in Tariffs in 2010 and the Renewable Heat Incentive in 2011 were introduced which pay commercial premises owners for all solar energy generated. The scheme also covers solar panels for residential properties.
How much do Solar Tariffs Pay?
Solar PV panel incentive rates are different to solar water heating incentives and the Feed in Tariff or FITs will pay as much as 43.3p for every kWh of electricity generated to those who have been smart enough to install solar PV systems on their garages, office blocks, factories, car parks, warehouses or farm buildings. Any electricity not used in the commercial premises can be automatically diverted to the national grid for an extra 3.1p p/kWh. Solar water heaters are financially incentivized by the Renewable Heat Incentive (RHI) which will pay up to 9.5p p/kWh to commercial premises owners. Commercial premises connected to a Heat Network can also earn extra revenue by exporting unused heat. A major change has been introduced to the UK Feed-in Tariffs that will put a cap on solar PV systems above 50kW. The rate payable for solar electricity generated from systems above 50kW will be reduced from 32.9p p/kWh to 19p. Systems between 150kW and 250kW will see rates dropped to 15p p/kWh and will be introduced on the 1st August 2011. The move is intended to concentrate on encouraging smaller scale commercial and residential consumers.
Solar Incentive Benefits
Solar energy can return healthy profits for commercial premises that install professionally designed solar energy systems. A 200kW solar panel system installed on the roof or in the grounds of a commercial premise could generate enough electricity to power 40 homes and earn around £30,000 a year. The same configuration of solar panels will earn twice that amount until the 1st of August 2011 when the Feed in Tariff rate will drop to 15p p/kWh from 30.7p for solar panel systems between 150kW and 250kW in size. It has been estimated that for every £10,000 invested in solar water heating a potential £1200 a year can be earned from the Renewable Heating Incentive.
Solar Tariff Conditions
The main conditions attached to government solar energy tariffs are that the solar products and components be sourced from a government approved supplier. For a commercial solar energy supplier to be government approved for Feed in Tariffs or the Renewable Heat Incentive, they would need to be accredited by the Microgeneration Certification Scheme or MCS. The MCS is the organisation responsible for the regulation of service and product standards in the UK solar energy market. This requirement is to ensure that only government approved standards are encouraged within the UK solar industry.
