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Installing solar panels on your roof has never been more attractive not only could you generate free electricity you would receive a feed in tariff payment for every unit of solar electricity your install produces. Solar panel installation is quick and easy! Solar systems are almost maintenance free.

The Feed in Tariff scheme has been established to pay householders with PV solar panels 41.3p per kwh of electricity generated. This payment alone could be between £900 - £1,450 a year, these are guaranteed for 25 years, are payable via the utility company, they also will rise in line with inflation. Overall a very attractive incentive to generate green, local electricity from a south facing property.

The solar electricity generated from your PV array is yours to use for free, you could generate 50% of your electricity needs from a well situated solar PV install. As electricity prices are likely to rise this current saving of £200 - £300 per year will become much larger in the future, saving you even more on your electricity bill. The Energy Saving Trust estimates that a 2kWp-sized system can save you up to £200 a year on your electricity bill and meet 40% of your electricity needs.

Over 25 years a solar panel installation could not only save you money but provide a sound financial investment. Typical solar PV payback times are between 9-14 years and with the feed in tariff guaranteed and inflation linked for 25 years the potential return on the investment could be as high as 13%.

How the scheme works

If you are eligible to receive the FIT then you will benefit in 3 ways:

  • Generation tariff – a set rate paid by the energy supplier for each unit (or kWh) of electricity you generate. This rate will change each year for new entrants to the scheme (except for the first 2 years), but once you join you will continue on the same tariff for 20 years, or 25 years in the case of solar electricity (PV).
  • Export tariff - you will receive a further 3p/kWh from your energy supplier for each unit you export back to the electricity grid, that is when it isn't used on site. The export rate is the same forall technologies.
  • Energy bill savings – you will be making savings on your electricity bills , because generatingelectricity to power your appliances means you don't have to buy as much electricity from your energy supplier. The amount you save will vary depending how much of the electricity you use on site.

Deemed export

Domestic FIT installations are likely to have their export deemed (estimated) at 50% in most cases until smart meters are rolled out.