Solar PV Panels = Cash For Your Home

The government introduced a new scheme in the UK in 2010 to encourage greater electricity production from the power of the sun. This provides householders with the opportunity to not only cut their electricity bills but also guarantees an income from all the power so generated over the next 25 years. That subsidy is such that you should be able to pay for the installation costs after around seven years (see table 2 below) meaning that the remaining subsidy is pure profit. Note that this scheme is designed to benefit the homeowner and does not apply to tenants who should approach their landlord to ascertain what benefits might be applicable

By putting solar panels on your roof, you’re not only telling the world about your green credentials, you’re probably adding to the saleability of your home as the income transfers to whoever you sell it to you in the future.

How The Scheme Works

Since 1st April 2010, the new grant is known as the Feed-in Tariff (FIT). Householders can arrange to have solar panels supplied and fitted to produce between 1.4 and 4kW of power. They must be fitted by MCS-approved installers to ensure the highest standards. The power generated depends on how many solar panels you have room for and decide to install. Six is the minimum number of Vysal solar panels that can be fitted in one installation and the maximum number is 17.

Providing the roof selected isn’t in shadow from other buildings or trees etc. and is facing roughly south, the panels will generate electricity throughout the year, although most will be in the summer months when the sun is brightest. This is fed through an inverter fitted in your roof space and the power generated feeds into your system so that you don’t have to buy so much from your electricity supply company. It is quite possible that at times, you may generate more electricity than your household uses in which case, providing your supplier is participating in this scheme, (you can check with them), they will buy your surplus from you at the rate of 3.1p kWh, known as ‘Export Income’. Don’t worry, once it’s all set up, there’s nothing for you to do, it will all happen automatically.

Irrespective of whether you use all the electricity or supply some back to the grid, your supplier will pay you the FIT at the rates below for every kWh that your panels generate. The level depends on when you start so the best time is to have the system installed before April next when the tariff reduces. Whichever level you start at, that is the rate at which you will be paid for the next 25 years " PLUS it is inflation-linked to the RPI.

Table 2

Type

FIT y/e Apr 2012

FIT y/e Apr 2013

FIT y/e Apr 2014

FIT y/e Apr 2015

FIT y/e Apr 2016

FIT y/e Apr 2017

FIT y/e Apr 2018

FIT y/e Apr 2019

FIT y/e Apr 2020

FIT y/e

Apr 2021

Solar PV up to 4kW in EXISTING properties

43.3p

39.6p

36.3p

33.2p

30.2p

27.5p

25.0p

22.7p

20.7p

18.8p

Solar PV up to 4 kW in NEW properties

37.8p

34.6p

31.6p

29.0p

26.4p

24.0p

21.8p

19.9p

18.1p

16.4p

st1:*{behavior:url(#ieooui) }

You can see from the table above that a lower rate is applicable to new build properties.

How Much Income Will Be Generated?

For private householders, the FIT income is treated as tax free. So how much can you expect to save?

Here is a close approximation for homes in the south and south west of England. It cannot be precise because of many individual factors about your property’s location, how close to due south the roof faces, etc. but it will give you an idea.

No.of Panels

Total Power kWp

Panel Area m2

Generation kWh p.a.

Lifetime Benefit

Payback Years

Total Annual Income

FIT

Fuel Savings

Export Income

6

1.410

9.6

1270

£16,973

10

£679

£550

£119

£10

7

1.645

11.2

1482

£19,802

8.5

£792

£642

£139

£11

8

1.880

12.8

1694

£22,631

7.7

£906

£733

£159

£13

9

2.115

14.4

1910

£25,520

7.5

£1,021

£827

£179

£15

10

2.350

16

2117

£28,289

7.5

£1,131

£917

£198

£16

11

2.585

17.6

2329

£31,118

7

£1,244

£1,008

£218

£18

12

2.820

19.2

2540

£33,946

7

£1,358

£1,100

£238

£20

13

3.055

20.8

2752

£36,775

6.9

£1,471

£1,192

£258

£21

14

3.290

22.4

2964

£39,604

6.8

NB ‘Total Annual Income’ is the sum of the following three columns to the right.

To get an idea of the cost for the supply and installation of a system, if you multiply the figure in the ‘Total Annual Income’ column by the ‘Payback Years’ in the same row, this will give you an idea of the charge but we can quote you a more accurate figure on request.

How Do I Proceed From Here?

Decide the approximate area of your roof (facing south or mostly so) you can use and using the ‘Panel Area m2’ figure above select the size of installation you want. Contact us and we will quote you to supply and install that system.

If you decide to go ahead, we will invoice you for a deposit of 20% of the total and once that is paid, we will arrange for a detailed technical assessment of your property to ensure its suitability. This will include location, roof strength, etc. If for some reason, your property is unsuitable, your deposit will be returned in full. Please note that listed buildings and those located in Conservation Areas will almost certainly require planning permission to be granted before you can proceed. Most properties do not need planning permission but if you are unsure, you should check with your local planning department.

Once we have the go ahead from the assessor to proceed, you will be invoiced for the balance of the cost and installation will proceed shortly after receipt of the payment.

Vysal only use high quality materials that will fulfil the task demanded of them. There are companies who will quote lower prices than us but it is likely that they are using cheaper, poorer quality materials that may not last so long. As with most things in life, you get what you pay for!

Is It Worth It?

Undoubtedly, ‘yes’ if you can raise the money to buy the system. The FIT is very generous and providing you meet the criteria of location and suitability, it should repay your investment and provide a healthy profit. We will carefully check your property’s suitability and your deposit will be returned rather than us supply you with a system that will not work efficiently.

Remember that the best rates apply to those who apply early so there is no reason to delay!

Is the Subsidy Applicable to Farmers and Owners of Commercial Buildings?

Yes, it is and we can quote for such applications. The FITs are different for such installations but you are not restricted to a maximum of 4kW and the subsidy is very attractive to farmers and owners of commercial buildings. It is more difficult to give quotes for such applications as there are often restrictions in access etc. which need to be taken into account so please do contact us and we will discuss your needs. Note that installations that are not roof-fitted will almost certainly be subject to planning permission.

Roof Rental Schemes or ‘Free Solar PV’

There are a number of installers offering such scheme but Vysal Ltd do not. Basically, there is no upfront cost to the homeowner and the installer keeps all the FIT for the entire 25 years. The homeowner gets all the electricity generated but this is a small return compared with the FIT, (see table 2 above), and in our opinion, the presence of such an agreement may affect the saleability of a property.

Using the figures above, on say a 9 panel, 2.115 kWp system, by buying your panels at a cost of around £8,000 you should generate an income over 25 years of around £25,500, a profit of £17,500. However, on a Free Solar Scheme, you sacrifice the FIT and your fuel savings and Export Income come to less than £5,000 over the full term.

If you are looking for a Free Solar PV system, we cannot help you.

FAQs

  1. Can I change my electricity supplier once I have a Solar PV system installed?

Yes, at any time. The new supplier should just continue to credit you with the electricity generated and pay the FIT to you. Just check that any new supplier will continue to buy any surplus electricity under the Export Income system.

  1. Should I change the way we do things once the panels are installed?

One tip would be to use as much power as you can during daylight hours as it is more economic to generate your own power than sell it to the electric company. Thus you should use appliances such as washing machines, tumble driers and dish washers during the day, using a time switch if more convenient.

  1. How can I be sure that the scheme will continue for the full 25 years?

This is a government scheme although payments come through the electricity companies. The government has made a commitment to green policies which include this scheme to help generate as much electricity for the country from the power of the sun.

  1. If I move, can I take the panels with me?

No, the system stays with the property. You can start a new scheme at another property you buy if one is not already installed.

  1. My roof doesn’t face south but is pretty equally divided facing east and west. Does this preclude me from benefiting from this scheme?

No, it is possible to fit panels on such a roof although the power generated may be reduced from the optimum by up to 15%. If you’d like us to consider such a roof, it will be investigated in detail when the technical assessment takes place and you will be refunded your deposit if it is thought not to be viable.

Site by Sticky