Solar Photovoltaic, commonly known as PV panels allow you to generate your own electricity using energy from the sun. They don’t need direct sunlight to operate only daylight, so they also work on cloudy days. Photovoltaic power generation employs solar panels composed of a number of cells containing a photovoltaic material. Due to the growing demand for renewable energy sources, the manufacturing of solar cells and photovoltaic arrays has advanced considerably in recent years.
By generating your own electricity you could save on your energy bills, and with the Government’s Feed in Tariff, you could be paid for every kilowatt hour (kWh) you generate. Although the rate offered by the Government has been reduced in recent months, there are still benefits to be had from installing PV.
In addition to generating your own electricity, any electricity which you don’t use can be fed back in to the Grid, thus allowing you to earn extra income.
Feed-in Tariff (FiT)
The Feed-in Tariff (FIT) scheme is a government programme designed to promote the uptake of a range of small-scale renewable and low-carbon electricity generation technologies.
The FIT scheme is available through licensed electricity suppliers. It requires some of them to make tariff payments on both generation and export of renewable and low carbon electricity. Generation and export tariff rates are index-linked which means that they will increase or decrease with inflation.
The following technologies with a limit on Total Installed Capacity (TIC), are eligible for the scheme:
- Solar photovoltaic (usually called PV) with a TIC of 5MW or less
- Wind turbines with a TIC of 5MW or less
- Hydro with a TIC of 5MW or less
- Anaerobic digestion with a TIC of 5MW or less
- Micro combined heat and power (CHP) installations with a TIC of 2kW or les
How much does it pay?
Feed-in Tariff rates
|Total installed capacity (kW)||Generation tariff with eligibility date on or after 1 April 2015 and before 1 July 2015||Lower tariff (if EPC requirement not met) with eligibility date on or after 1 April 2015 and before 1 July 2015|
|<4kW (new build and retrofit)||13.39p/kWh||6.16p/kWh|
These figures are provided by OFGEM