What Is Solar PV?

Solar PV or photovoltaic systems convert light from the sun into electricity that can be used to power lighting and other appliances. Large savings can therefore be made on electricity bills in the following ways:

• Light from the sun generates electricity – this is measured using a meter.
• The electricity produced may be used by the household thus reducing electricity bills.
• A Feed in Tariff is paid by the energy companies for each kWh of electricity generated by the Solar PV system.
• Surplus electricity not used by the household is sold back to the grid - most energy companies will assume this is 50%.

Is My Property Suitable For Solar PV Panels?

• The property or land must be owned by the user.
• Most installations do not require planning permission – the installation of Solar PV comes under ‘permitted development rights’. However, if the property is a listed building or situated in a conservation area or world heritage site, you should check with your local authority as planning permission is likely to be required.
• In most cases, solar panels are located on a roof. You must have at least 8m2 of space available to situate the panels for a 1kWp system.
• The panels should face somewhere between South East and South West (through South). Panels can be installed if they face East or West but their efficiency can be reduced by as much as 25%
•  The proposed panel location should not be shaded by trees, buildings or other obstacles.
• The roof should be strong enough to take the weight.
• You need to have any panels installed by companies accredited under the Micro-generation Certificate Scheme (MCS).

What does it cost to install Solar PV?

A typical 3kWp system costs around £9,000 to £10,000 to install.

What Are Solar PV Feed in Tariffs?

Solar PV Feed in Tariffs are payments made by the Energy companies to anyone who generates their own electricity, including home owners, public sector bodies, charities and businesses. In summary they:

• Are available to ALL small-scale electricity generators.
• Provide income from Generating and Exporting electricity.
• Are tax free payments for 25 years.
• Provide savings on your electricity bills and around a 10%-12% return on your investment.
• A 3kWp system earns around £1280 per year.

How Much Can I Earn & Save With Feed in Tariffs?          

A typical 3kWp system can earn the following:

• Generation Tariff (see above) = £1083 per year.
• Export Tariff (extra 3.1p per. unit) = £38 per year.
• Electricity Bill Savings = £162 per year.
• Total Earnings per. year = £1283.

As a 3kWp system costs around £9,000 to £10,000, a return of £1283 per year means that the initial capital cost would be recovered in around 8 years with a return on your capital of around 12% per annum. * Figures quoted are using SAP 2005 Solar PV calculations

* all figures sourced from the Energy Saving Trust - www.energysavingtrust.org.uk ** Information provided by 5D Energy