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Reduce your carbon footprint

Solar panels being installed in ChristchurchYour current electricity supplier may generate your electricity by burning fossil fuels, e.g. coal. This releases carbon emissions in the form of greenhouse gases into the atmosphere and is thought to contribute to global warming. By installing solar electric you have a means to generate electricity without releasing greenhouse gases, allowing you to reduce your carbon footprint.

Reduce Your Electricity Bill

Solar panels being installed in Ilchester, SomersetAn average-sized solar electricity system of peak generation capacity 2 kWp (kilowatt peak) will generate 1,600 to 1,800 kWh (kilowatt hours) of electricity per year, enough for roughly a third of the average household's requirements. The Energy Saving Trust estimates an average household could save £200 a year on its electricity bill.

Furthermore, the cost of the electricity you generate by solar power will never go up in price, unlike the cost of electricity supplied to you. The more the cost of electricity rises, the more you will save from your solar installation, and electricity cost is set to soar.

Receive Payments for the Electricity You Generate

The Government's Department of Energy and Climate Change has introduced a Clean Energy Cashback Scheme to incentivise low carbon energy generation techniques such as solar power.

To qualify for the Scheme, you must use a Microgeneration Certification Scheme accredited installer, like us.

The Scheme gives you the following financial benefits:

1) Receive Payment for The Electricity You Generate and Use

The Scheme pays you for every kWh (kilowatt hour, or unit) your system generates, even if you use the electricity within your own property.

The scheme sets a Feed-in Tariff which your energy supplier pays you for the electricity you have generated. The Tariff is:
- guaranteed for 25 years, so you can count on future payment rates.
- indexed linked, so the value of the payments is not eroded by inflation.
- tax free. An added attraction, particularly if you are a higher rate taxpayer.

The Feed-in Tariff rates are currently subject to new proposals from the Government.

Those looking to install a new solar PV system should now plan on the basis of a 21p/kWh Feed-in Tariff for 25 years. However, there is a small chance that if your system qualifies for an installation date of 2 March 2012 or before, you may be able to get a 43.3p/kWH Feed-in Tariff for 25 years. Keep in mind this is in no way guaranteed as it depends on the full Government proposals being defeated.

The new proposals likely to come into force on 1st April 2012 are as follows:

- The Feed-in Tariff will be reduced to 21p/kWh for solar PV installations less than 4kW in size.

- To qualify for the 21p/kWh rate, the property will need to meet energy efficiency requirements by having an Energy Performance Certificate rating of level C or above. If this is not met, a lower tariff of 9p/kWh will be applied.

The Feed-In Tariff you receive will is determined by when you have had your system installed. Note that the tariff is likely to be cut again in coming years, so future entrants will be paid less per unit.

2) Sell Any Surplus Electricity Back to the Grid

If you generate electricity surplus to your requirements, you can sell it back to the Grid. You will receive a further 3p/kWh from your energy supplier for each unit, which is known as the Export Tariff rate.

See a Return on Your Investment

It is the Government's intention with the Clean Energy Cashback Scheme that those installing a solar PV system will see an overall return on their investment.

The new proposals due to come into force on 1 April 2012 are designed to give a householder with a 3kW system a rate of return of around 4.5% (view proposals).

Further Reading

12 Dec 2011 UK Government proposed changes to solar PV Feed-in-Tariffs

Feed-in Tariff Information from the Department of Energy & Climate Change

Feed-in Tariff Scheme Information from the Energy Saving Trust



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Registered Address: Global First Solar Ltd, 10 Furzefield Road, Blackheath, London, SE3 8TX
Company Reg No: 7612145

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