Earning Money From A Solar Panel Installation
How to earn money from a solar panel installation explained. Solar panel installations - and other electricity generating technologies - can earn you money in two ways. Firstly, any energy you produce from the solar panel system means you will consume less of the power provided by your energy provider, reducing your bills. Secondly, and most interestingly, all of the generated electricity produced by your solar panel installation will be monitored and your electricity provider will pay your for generating it, this is called the Feed In Tariff and this currently returns 43.3 pence per kilowatt hour. There is also an assumption that you will only use 50% of the energy generated by your solar panel installation, so the other 50% is automatically fed back into the power grid, and for this, you will be paid at a rate of 3.1 pence per kilowatt hour, this is known as the Export Tariff.
The Solar Power Feed In Tariff Explained
In order to earn money from a solar panel installation, you will be providced with a Total Generation Tariff Meter, this meter will monitor, record and display how much electricity is generated by your solar panel system. You will be responsible for providing this figure to you electricity provider every four months. Your provider will then send you out a cheque for every kilowatt produced. Currently, electricity providers are paying 43.3 pence per kilowatt hour. Recently however, the Government has announced that this figure will be reduced to proposed figure of 21p/kWh, although this figure is still under consultation and has not yet been finalised.
The new reduced rate will be introduced from 1st April 2012 and will affect solar panel installations with an eligibility date on or after 12th December 2011. New requirements are also being introduced from 1st April 2012; domestic properties which do not meet the new requirements will receive a lower tariff of 9p/kWh.
On the higher tariff of 43.3p/kWh, the annual earnings and savings of an average 2.9kW system would total £1190. On the new reduced tariff of 21p/kWh the total would be £640.
The reduced Feed In Tariff rate will affect everyone who has already had a solar panel system installed but not yet applied for the Feed In Tariff scheme or anyone who is currently considering having a solar panel system installed. Any solar panel system which is installed and has applied for the Feed In Tariff scheme by midnight on 11th December 2011 will receive the higher 43.3p/kWh tariff for the full 25 years of support. Solar panel systems installed between 12th December 2011 and 31st March 2012 will receive the higher tariff until 31st March 2012, after which they will be on the reduced tariff of 21p/kWh for the remainder of the 25 years' support. Systems installed from 1st April 2012 onwards will only be eligible for the lower tariff for the full 25 years.
Advised timeline to ensure your are eligible for the higher Feed In Tariff
Now - Contact a FIT (Feed In Tariff) licensed supplier for information on their application process
24th November 2011 - Install and commission your solar panel system
8th December 2011 - Your solar panel installer is required to generate and provide you with an MCS certificate within 10 days of commissioning your system
8th December 2011 - Today is the last day you can submit your application (by special delivery) to ensure your select FIT licensed supplier receives it and can process it before 11th December 2011.
