Solar PV Panel Feed-In Tariff Earnings
Average export tariff earnings = £40 upwards per year
Average energy bill savings = £100 per year
Related Guides: Solar Panel Cost
Update – June 2012: Get in quick and install solar PV panels before the 1st August to earn a higher Feed-in Tariff rate of 21p per kWh. This means you’ll earn on average £670 per year for 25 years rather than the lower rate of around £555 for 20 years if you install after the August deadline.
Once you have installed your new solar PV panels, you can benefit from the government Feed-in Tariff (FIT) scheme. This tariff provides cash back for the amount of renewable electricity generated by solar PV panels to encourage homeowners to switch to more eco-friendly fuel options. Under the government scheme any surplus electricity you produce can also be sold back to the National Grid; and because you are paid for electricity you use as well, earnings end up averaging about £670 per year! Solar PV panels also require little maintenance and are designed to last about twenty five years – so you really are saving money in the long run.
Installation costs will vary according to where you shop or what kind of deal you end up going for, but on average a PV Solar Panel FIT monitor will cost around:
- For 50-80w solar PV systems – £60
- For 90-120w solar PV systems – £80
- For 130w+ solar PV systems – £120
Remember, these are only estimates, and if you shop around properly you might be able to have the FIT monitor installed as part of your original solar panel deal – so don’t always go for the first thing you find. Either way you will, however, end up saving money in the following ways:
- Generation tariff – for each kilowatt hour (kWh) of electricity you generate, you are paid a standard, set sum under the scheme, which usually averages around £530 per household, per year.
- Export tariff – under the export tariff you could save an additional £40 a year, by selling any surplus electricity generated back to the National Grid. Before installation this is usually estimated at around 50% of what is produced, so if you wish to alter that figure you need to contact people in charge as soon as possible, so a more accurate SmartMeter can be fitted alongside your solar PV panels.
- Energy bill savings – finally, solar PV panels can save you between £90 and £180 per year on your electricity bills. This may not sound like much, but because of the longevity of solar panels you will end up recouping your costs and a little extra before you know it!
The following changes will be made to the FIT scheme from 1st August 2012:
- Generation tariff rates will decrease from 21p per kWh (which the below figures are based on) to 16p per kWh. This applies for solar installations up to 4kW in size installed in properties which have an EPC rating D or above
- Generation tariff rates will decrease to 7.1p per kWh for solar installations up to 4kW in size, installed in properties which have an EPC rating E or below
- The length of time tariffs will be paid for will reduce from 25 to 20 years
- The export tariff rate will increase from 3.2p per kWh to 4.5p per kWh
These changes mean that you will still make around a 6% return on investment if you join the FIT scheme after 1st August 2012, says the government. Kevin Power, from Kraft Renewable Energy estimates that you will earn around £11,085 over 20 years through the FIT scheme (index linked for inflation), if you install after 1st August.
Find out more about how the Feed-in Tariff works and how to apply.
*Source: Energy Saving Trust. All information is accurate as of June 2012