There are three areas in which you make savings using solar panels and their installation.
The Feed-In Tariff
Feed-In tariffs were introduced in 2010 to encourage the use of renewable energy technologies and incentivise those who install them. There have been a number of changes to the tariffs with the latest revision being valid from August 2012 to 30th June 2013.
For the latest feed-in tariffs CLICK HERE.
Any electricity which you do not use can be sold back to the grid and you are paid for each Kilowatt you sell.
Electricity Bill Savings
The most obvious savings using solar panels are the reductions to your electricity bills. This is because the solar panels are generating the electricity you use and you are not having to purchase it from the national grid. This can be improved by adjusting your electricity usage habits and making sure you use your high demand items during the day when you are generating the highest kilowatts.
The combination of the feed-in tariff and the exported electricity is the key to your investment growth from having the solar p.v. installation. The electric bill savings using solar panels is an investable extra which you can use for whatever you feel is the most appropriate way for you.
Example Savings Using Solar Panels – A 4Kw Solar P.v. system.
Whilst the performance of a Solar P.v. system is impossible to predict because of the many variables including the weather, the location, etc. This example has been produced using information from the solar prediction tool we use to help provide the information required to make an informed decision on how a solar panel installation can work for you.
Estimated Figures for a 4Kw system are -
CO2 Savings – 31.6 Tonnes
Income from Electricity Generated over 20 years – £13777
Electricity Generated and Sold Back to the Grid over 20 years - £2588
Consumed Electricity Savings over 20 years – £26951 (taking into account 9% energy cost rises)
Financial Benefit over 20 years (less initial cost of installation) - £24,183.00
When applying for FITs you will need to show evidence of your property’s Energy Performance Certificate and this will affect what tariff you can get.
Please note that the Feed-in Tariff scheme is not available in Northern Ireland.