Here at the Eco Renewables Group in Preston, we provide a range of solar solutions to homeowners across the North West Region. From Lancaster to Southport, we deliver a high quality and professional service. One of the questions we are often asked is how does the feed in tariff work for solar PV? As one of the deciding factors related to installing solar panels, customers are keen to know the full story. As a result, we have produced this guide to the feed in tariff and Solar PV.
What are Feed-in Tariffs (FIT’s)?
FITs are a UK Government scheme that allow owners of individual renewable energy sources to feed excess electricity back into the national grid. For doing so, owners will be paid for their contribution. They will also be paid for any electricity they generate. This scheme was designed to encourage and increase the amount of small-scale renewable electricity generating technologies in use in the UK.
Solar PV is only one of the renewable energies that can benefit from the FITs. Other renewable sources including hydro, wind and micro CHP technology can also be used. However, for the homeowner, solar panels are definitely the easiest way to contribute.
How much money could you make through FITs?
Once you have applied to the Feed-in Tariff, and your eligibility has been confirmed, you can benefit in three ways:
#1 The Generation Tariff
Your energy supplier will pay you a set rate for each kWh of electricity you generate. Once your solar power system has been installed and registered, your tariff rates are guaranteed for the period of the contract, which is usually up to 20 years.
#2 The Export tariff
Your energy supplier will pay you an additional rate for each unit that you export back to the electricity grid. This means that you can sell back any excess electricity you produce but dont need to use. Having said that, many domestic solar panel systems are too small to be able to produce excess electricity (usually over 30kWp).
#3 The Energy Bill Saving
No matter how much electricity your solar panels produce, you will be making a saving on your electricity bills. This is because you wont need to buy as much electricity from your energy supplier to power your home and appliances.
For more information and advice, get in touch with the experts today, here at the Eco Renewables Group.