0845 539 9896
The Solar Electric Power Company
For Expert
Advice or
To Arrange
A FREE Survey
How Much Will it Cost?
Firstly it is worth noting that there are Grants available in many areas to help with the cost. Then you will need to look at the return you will get on your investment by looking at the Feed In Tariffs. The best way to illustrate this is by example.
How long will Feed in Tariffs Last?
The Government has committed to pay the tariff for 25 years for photovoltaic installations.
Will the tariff change?
Once your tariff is agreed with the Government it will not decrease. The introductory tariff will stay the same from 1/4/10 to 31/03/12. It will then drop each year for future installations. This is to encourage early uptake. The Government annouced it will be linked to inflation and tariffs will be inflated annually.
Why is the Government doing this?
The Government is way behind other European countries on commitments to reduce carbon emissions and to secure against future oil supplies. This is one way it can catch up. The UK currently produces 5.5% of electricity from renewables, this is expected to rise to 30% to meet the 15% 2020 target for all energy.
Feed-in tariffs have been introduced successfully in many countries around the world, including Spain and Germany. It has encouraged huge growth in PV and created many jobs.
How Much Money Will I Save?
The amount of money you save will be dependent on the amount of electricity that you generate and how you use this electricity in the home. The feed-In tariff is a 'premium tariff' which means that generators will be paid the FIT rate (p/kWh) for their total generation but will also be able to 'sell' any electricity they export back to the grid. Customers will recieve a guaranteed export payment of 3p/kWh. This is designed to encourage generators to use the electricity they generate within their home so they can benefit further from reducing the need to purchase electricity from a supplier. The below table provides examples of the savings that you could make by installing solar PV panels:
| Installed system size | 1 kWp | 2 kWp | 3 kWp | 4 kWp |
| Installed price available from (inc VAT) | £7,680 | £11,454 | £15,830 | £19,399 |
| Annual Generation (kWh/a) | 892 | 1,734 | 2,601 | 3,366 |
| Electricity exported ( kWh ) | 446 | 867 | 1,300 | 1,683 |
| Feed-in tariff scenario | ||||
| Import Price p/kWh1 | 12.96 | 12.96 | 12.96 | 12.96 |
| FIT (p/kWh) | 41.3 | 41.3 | 41.3 | 41.3 |
| Export price | 3 | 3 | 3 | 3 |
1 npower standard domestic tariff price for Midlands distribution area as of 31st March 2009. Prices provided are "follow on unit rates
| Feed-in tariff Scenario | ||||
| Import Savings | £57.80 | £112.36 | £168.48 | £218.11 |
| FIT income | £368.40 | £716.14 | £1074.21 | £1390.16 |
| Export income | £13.38 | £26.01 | £39.00 | £50.49 |
| TOTAL | £439.58 | £854.51 | £1281.69 | £1658.76 |
Please note that savings provided above are for customers installing after 15 July 2009. All existing customers registered for the Renewables Obligation before this date will be subject to different FIT rates
The Example below is based on the installation of a 2.16kWp with 12 panels
Annual UK family household electricity bill (5,000kWh@0.14p) - £700
Cost of 2.16kWp system incl 5% VAT - £11,125.80
Electricity savings from system output (assuming 75% used in house)
if used in house - £200
Feed-in tariff on all generated electricity est 1913kWh @41.3p - £790
Electricity exported back to the National Grid (assuming 25%) @5p - £24
Total saving plus income/annum - £1014
Return on Investment - 9%
Payback Time - 11yrs
All prices and figures given are a guide only as every installation is likley to be different and subject to survey
There are many variables in assesing cost and payback time so please contact us for a FREE consultation and survey.
Copyright© 2010 The Solar Electric Power Company Reg 7189499 - Site developed by Web Presence