Solar makes sense

Astronomical rises to electricity and gas prices[1] have hit consumers yet again. But instead of calling your power company to complain or surfing the internet to find a cheaper rate, it could be the perfect excuse to take the leap to solar. If you’re looking out your window to a grey day, you might be thinking that solar can’t possibly work in Blighty. But the fact is, solar panels not only work, they pay >you< money.

Neil Ward is one Brit who decided to soak up the sun by installing 18 Everest Solar PV Panels on his semi-detached bungalow earlier this year. A major factor in his decision was the Feed-in Tariff (FIT), a payment set by the government to reward forward-thinking consumers.

"Even though I had my Everest Solar PV panels installed in the middle of winter, in just four months, I’ve already been paid £600 via the FIT. And that’s not even including the savings I’ve made by using self-generated electricity instead of buying it," says Neil.

The way the FIT works is that gas and electricity suppliers are required to make payments to you – now there’s a turnaround – for any energy you generate. But what’s crucial for anyone considering investing in green technologies is that, if you install Solar PV panels, this rate is guaranteed for 25 years[2] and is linked to inflation, so energy companies can’t suddenly decide to pay you less in five or 10 years’ time, for example.

Even better, the subsidy is currently set at a very generous level, meaning the total payments from the FIT over a 25-year period will be several times the cost of the system. “The current FIT payment for those installing systems now is 43.3p per kWh produced, so I estimate my Everest Solar PV Panel system will have paid for itself in around 10 years, leaving me with 15 years of profit,” says Neil.

Be aware that the FIT is being reviewed in April 2012 and payments for those who haven’t already installed Solar PV panels are expected to be lower[3], so it’s advisable install a system sooner rather than later to ensure the highest payment.

Everest Solar PV panels are currently available only in the Meridien TV region. If you live outside this area but would like to invest in the panels, contact xxxxxxxxxx to register your interest.

Solar PV Panels: the basics[4]

1. Solar PV Panels generate electricity. They differ from Solar Thermal Panels, which are used to generate heat, typically for hot water.
2. Direct sunlight is not necessary for Solar PV Panels to work, but the more daylight they receive the better, so a roof that faces south to some degree and that isn’t in full shade is best.
3. PV stands for Photovoltaic – with the Photo part deriving from the word for sunlight, and the Voltaic part referring to volts, or electricity.
4. If you install Solar PV panels, the government’s Feed-in Tariff (FIT) scheme guarantees a generous payment to the property for 25 years.
5. Install Solar PV Panels this year, and the payment to you is set at 43.3p per kWh for retro-fitting the panels to an existing property, and 37.8p per kWh for designing them into new-build properties. This payment is for all the electricity your Solar PV Panels generate, whether you use it or it goes back to the grid.
6. Prices for electricity are currently around 15p per kWh[5], so the FIT pays you far above current rates.
7. The FIT means that energy companies cannot change the rate they have to pay you. It is set at the time you install your panels and is linked to inflation.
8. Your home will typically use around half the electricity generated by Solar PV Panels, meaning your electricity bills will be significantly reduced, with the other half going back to the grid. You’ll earn at least 43.3p per kWh for all the electricity generated, whether you use it or not.
9. In most cases, you won’t even need planning permission to install Solar PV Panels, but your installer can advise on this.
10. Planning to move? A study at University College London concluded that Solar PV Panels increase the saleability[6] of your home.[7]

[1] www.guardian.co.uk/business/2011/jun/11/chris-huhne-energy-companies-price

[2] www.energysavingtrust.org.uk/Generate-your-own-energy/Sell-your-own-energy/Feed-in-Tariff-scheme#howitworks

[3] www.guardian.co.uk/environment/2011/jun/10/feed-in-tariffs-solar

[4] www.energysavingtrust.org.uk/Generate-your-own-energy/Solar-electricity#Issolarelectricitysuitableformyhome?

[5] Average of a quick check of British Gas, Scottish Power, nPower and Eon.

[6] NOTE TO SUB: Saleability is DIFFERENT from value, so this word should NOT be changed.

[7] www.oxford.gov.uk/Direct/SolarValueStudyFinalReport.pdf