Solar Payback Calculator Feed-in Tariffs
The Feed-in Tariff enables the homeowner to be paid for the electricity produced by the solar panels and this is calculated in two ways. The Generation Tariff pays a set amount of 16p per unit of electricity produced on all solar panel systems up to 4KWp whether the electricity is used or not. PV systems over 4KWp and up to 10KWp are paid at a slightly lower rate of 14.5p per unit.
The Export Tariff pays an additional 4.5p on top of the generation tariff payment for each unit of electricity which has been produced and then exported back to the grid. If you also take into account the reduction of your electricity bill due to the reduced household consumption, you will soon start to see significant earnings and savings.
Solar Payback Calculators
If solar panel installation is something you have been seriously considering, then it's well worth using one of the many online solar payback calculators to calculate not only what you could earn from a solar panel system, but also what you could save on your electricity bills over a twelve month period. These payback calculators can be found on most reputable solar panel suppliers' websites and by using the "Roof Checker" in conjunction with the calculator.
You can find out what size system you can have installed on your property and the average cost of that system as well as your expected annual savings and earnings. Once you have had the solar panels installed you will receive this payment for a guaranteed 20 years.
Earnings And Savings With Domestic And Commercial PV Systems
The Feed-In Tariff system has two payment categories, the first being the payment for every unit of electricity produced (the Generation Tariff) and the second (the Export Tariff) which pays a further 4.5p for every unit of electricity produced which is then exported back to the grid.
An average 2.15KWp PV panel system with an area of 15 metres squared costs around £6,000 for the system and installation and although this may seem like quite an excessive investment, once the tariffs and annual savings are calculated, it becomes possible to see how quickly the costs of the system can be recovered. The estimated FIT Generation tariff for a PV system of this size is £275 per year, the estimated FIT Export Tariff is a further £39 per year and, with an additional £125 savings on electricity bills, this brings the annual total up to £439.
The same applies for commercial solar panels except on a much larger scale although larger buildings will tend to utilise all the electricity produced so will not necessarily benefit from the Export Tariff. However there are still significant earnings and savings to be made and a PV panel system of 25KWp which costs around £40,000 will have an estimated Generation Tariff of £1,980 per year in addition to £3,000 saved on electricity bills, giving an impressive annual total of £4,980.
In an ideal world all homes would be fitted with solar panels as standard but, unfortunately, there are some properties which just aren't compatible and it is imperative that anyone considering solar panel installation checks the specifications before going ahead with the installation.
Solar Panel Installation
Before going ahead with solar panel installation there are a few points to take into consideration. Naturally the roof of the property should be in good repair and able to withstand the weight of the panels; ideally the property should be southerly facing for optimum productivity and the roof should not be obscured by shrubs, trees or other buildings. A reputable solar panel installation company will always check out these factors before undertaking the work.