Yesterday, we had a call from a customer looking for a local company to install solar PV in St. Austell. He explained that he had decided to buy solar panels after reading an article in the Telegraph, concluding that now is the best time to buy solar.
We couldn’t agree more, especially as renewable energy is overtaking fossil fuels, with the world now adding more capacity for renewable power each year than coal, natural gas, and oil combined. (Bloomberg Business)
Although the Feed in Tariff has been around for a few years now, we’re still surprised by how few people we meet who understand how it works, and that solar really is a great investment.
How it works:
The feed in tariff will pay you a set amount for every unit of energy produced, regardless of whether it is used by the householder. You will also be paid for energy produced, but not used, and therefore exported back to the grid. Some householders choose to measure this using smart metering, however, most sign up to an agreement based on an assumed export/usage rate of 50/50. This is termed ‘deemed export’ and you will currently be paid at a rate of around 4.9p per unit.
We are currently installing 4KW of solar PV from £5500 for simple installations. The FIT for up to 4KW until July 2015 is 13.39 per unit, fixed for 20 years from date of application.
At this cost you can earn nearly 20% annual return on investment or get a 5 year payback.
Seems too good to be true? See the calculation below for a standard 4kW installation in Cornwall
| Annual Solar Electricity Generation: | 4000kWh | |
| Feed in Tariff Income: | 4000kWh x 13.39p = £536 | |
| Electricity Savings (at 50% self-consumption and 15p/kWh day rate): | 2000kWh x 15p = £300 | |
| Export Payment (deemed at 50% solar generation): | 2000 x 4.89p = £98 | |
| Total Annual Return: | 536+300+98 | £934 |
With the FIT due to be gradually phased out as PV becomes cost effective in its own right, the time to invest is now. The current FIT rate will last until 1st July 2015, and the government are currently planning to review the longer term plan for the FIT later this year.
The great thing about solar, is that getting panels installed and applying for the FIT payments is a pretty simple process – and our aim is to make is as simple for you as we can.
Below is our quick guide to installing PV and applying for the FIT.
1. Choose a reliable, local installer – make sure they are MCS certified, and beware of high pressure sales techniques (see the link at the end)
The installer will survey your property to assess location, orientation, shading and best system design. They will then provide you with a quote document, complying with strict MCS guidelines. Your installer will check the safety of your roof, and give you any further information regarding your install.
2. Once you have paid your deposit, your installer can organise the install work. Choose the energy supplier you would like to sign up to for your FIT payments as soon as you can. Many people choose the energy supplier who is already supplying their electricity, but you can choose a different supplier if you prefer. Ask the supplier for the application paperwork, so that everything can be filled in as soon as possible once the install is complete and commissioned (tested for safety and registered with MCS) especially if you are close to a tariff deadline. Submit the paperwork once you have the MCS registration number.
Our team are happy to help with completion of the FIT paperwork and will send a reminder before the tariff deadline to make sure you don’t miss the application date.
If you would like to install solar in Cornwall, give us a call, our friendly team would love to hear from you.
How to avoid high pressure sales tactics
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