Should I wait for the Government review before installing solar panels?

There's been a lot of headlines, and we've posted our own articles, on the Government's decision to review feed-in tariffs with regards larger scale installations.

This has come in the wake of fears that investors are cashing in on the lucrative tariff payments by backing large scale installations on brown field sites, particularly in the South of England.

Understandably, homeowners get nervous at the thought of tariffs being reduced - will they continue and is it still worth installing photovoltaic solar energy?

As we understand it, the present tariff's (for homeowners) will still be reviewed in 2012. Any reduction to the feed-in tariff being paid to installations already created and claiming, cannot legally be reduced.

So if you've already got your solar panel installation in place and are claiming the feed in tariff, then it will take a lot of bureaucracy to reduce the amount you get paid.

The same is true for those considering a solar panel installation - getting in now before any review of rates or tariffs is probably the best course of action.

This March will see a Government review on larger scale installations - it's not expected to affect homeowners.

Homeowners still worried about a potential for reducing tariff rates would do well to look at other countries which have all had to reduce their tariffs due to over-subscription. Countries like Germany, Italy and Spain.

Whilst the rates for new subscribers were reduced, existing installations (to our knowledge) were un-affected.

photo credit: chris connelly

How to make a £1000 a year from Feed-in Tariffs

There's been lots of media attention on Feed-in tariffs recently - the ability to make money from solar panels on the roof of your home, but what is a Feed-in tariff and how exactly do you earn money from it?

Feed-in tariffs pay back qualifying homeowners and businesses for the electricity they generate via solar panels, wind turbines, hydroelectricity and anaerobic digestion, although solar energy is currently the most popular type of installation.

Payback is in 3 parts

Payback is in 3 parts: The Generation tariff is a set rate (set by the Government) paid by your energy supplier for each unit of electricity you generate, the Export tariff is a payment you receive for each unit you export back to the National Grid, that you don't personally need/use yourself, and finally, the savings you'll make on your normal energy bills through not having to 'buy' as much energy as you did previously.

The Generation tariff changes (after the first two years) each year for new entrants to the scheme, however, once you're in, you'll enjoy the same rate for the length of the FiT's scheme. (Currently 25 years for solar installations, 20 years for others). Current rates are between 29.3p and 41.3p per kWh

The Export tariff is currently set at 3p per kWh (unit of electricity) and is the same for all technologies.

Making your home more energy efficient through improvements, insulation and energy rated appliances etc will all help lessen your overall energy usage, making the savings even greater on your daily energy bills.

That's £920 a year on average

Using the example given by the Energy Saving Trust, a 'typical' 2.2 kWp solar installation could earn:
£770 per year from the Generation Tariff
£30 per year from the Export Tariff
£120 per year reduction in your current electricity bills.

That's £920 per year on average.
This will depend on your location, the amount of daylight / orientation of panels to the sun etc. and how efficient your home is in its everyday energy use.

It should be noted that only those systems installed from the 1st April 2010 using an Microgeneration Certification Scheme (MCS) certified installer will qualify. If you installed generating technology between 15th July 2009 and 31st March 2010 and transferred to the FiT's before the 1st April 2010, then you'll also qualify. Tariff income for household customers using the energy for their own use is also free from Income Tax.

The Government is being repeatedly appealed to, to include micro-generators that fall outside the scheme's dates but so far have not yielded.

The FiT's cover installations up to an installation size of 5 mega-watts. Your MCS installer will be able to help you complete the claiming process once your system is installed.

So if you've got money in the bank that, at todays rates, won't be making an awful lot, then perhaps you should consider a solar panel or other micro-generation installation. Whilst tariff rates are high, and with the certainty that energy bills will only get more expensive.

It should also be noted that, whilst the Government is committed to the present tariff levels till 2012, there are numerous rumours that the Generation tariff is going to be reviewed this October (2010) and the micro-generation industry believe a cut in the rate is likely to be announced.

Renewable Heat Incentive scheme

There is currently no scheme for hot water generating technologies, however a decision is expected soon on the Renewable Heat Incentive scheme which would cover hot water renewable technologies - solar, ground source etc, originally planned to start in April 2011. Government Ministers are still debating how exactly funding will be paid to homeowners etc. and how early adopters will also be able to claim (if at all).

There have been some 10,000 entrants since the scheme started in April, the sheer numbers, whilst very encouraging for renewable targets, does present a problem for the Government in how to continue funding the tariffs whilst faced with the extreme cuts to current expenditure levels. Many other european countries that started their own tariff's before the UK have already announced or made their own reductions, which has resulted in the number of entrants slowing.

To get your own quote for installing solar panels, visit Solar Panel Quoter and get an instant online price guide, without the need for any salesmen to call on you.

photo credit: neil lall

note: This story first appeared in Home Improvement Quotes homeowner newsletter published on the 4th October 2010.

five-fold increase in demand for photovolatic solar panels predicted

Following the launch in April of the Feed-in Tariffs for homeowners and businesses who install photovoltaic (electricity generating) solar panels on their properties, experts predict a five-fold increase in demand.

According to a report on Business Green, it's also predicted that the UK could deliver 1GW of installed solar capacity by 2015, marking a 30-fold increase on current size.

Under the feed in tariffs, households and businesses can receive up to 41.3p from their energy supplier for each kilowatt hour of renewable energy they generate.

This all comes amidst warnings that other renewable sectors - solar hot water and ground source technologies - may suffer as a result of the attention, PV solar is currently enjoying.

If you're thinking of installing your own solar panel system - try Solar Panel Quoter first for a genuine quote and advice.

photo credit: kamshots

Feed in Tariff's boost Italy's solar panel market

As reported at Business Green.com, another example of feed-in tariffs boosting take up of solar energy by households can be seen in Italy where photovoltaic capacity has risen 36-fold in the past three years.

Italy is now very close to the one gigawatt mark.

This contrasts heavily with the 22MW Italy was generating in 2007.

Despite expectations the Italian government will reduce feed-in tariff rates this year, confidence is high that the uptake of solar energy will continue.

Read more at Business Green.com.

Let's hope the expected feed-in tariffs in the UK will be just as welcomed. If you're tempted by the expected feed-in tariffs for the UK, it might be worth finding out how much a solar panel installation will cost you. Get an instant online quote at Solar Panel Quoter.co.uk by clicking here. It's a completely FREE service.

photo credit: andy hay

Photovoltaic Solar Panel Installation costs not what they seem

Happy New Year everyone and welcome back to Solar Panel Quoter - the Blog, after the Christmas break.

Just like those New Year Sales, we're back with a vengeance, Solar Panel Quoter - the Blog - will be bringing you an almost daily digest of the latest solar and other renewable energy stories throughout 2010.

Like this one....

The Daily Herald in Chicago (USA) reported just before Christmas on a new photovoltaic solar energy installation at Schneider Electric.

What struck me about the story was the miss-leading way the installation costs were put across.

Their recent completion of a photovoltaic solar panel installation quotes them as saying the project took about six months to complete at a cost of $750,000. The company expected to save $9,000 annually off of their $316,000 electric bill.

Hang on a minute - that doesn't sound like a very short pay-back period (does quick mental maths) that's 83+ years to get your money back. With a quoted life expectancy of 40 years - thats 43+ years short.

It doesn't paint a very good case for installing solar energy does it?

Ah - but read onto the bottom of the piece and we find out that the company predicts "It has a payback time for the company's costs of installation of 8 to 10 years, or roughly $90,000. The rest of the construction cost was supported by federal and state incentives and tax credits, the company said."

That's more like it. Read the full piece at the Daily Herald by clicking here. There's a useful quote about the effectiveness of photovoltaic solar power even in climates / states not renowned for their geographic position to take full effect of solar energy.

It also goes to show the continuing importance of national and local government subsidies as well as an increasing involvement by the private sector if renewable energies like solar power are to appeal to homeowners and businesses alike in the UK.

photo credit: francisco osorio