Installing solar panels on your roof is a great investment. There are three financial benefits for a house holder investing in solar power.
Domestic – Your Solar Investment. Turn a profit for from the Feed In Tariff Scheme
- The money you save for all the electricity you produce.
- The money you get paid for producing solar electricity (generation tariff).
- The money you get paid for selling electricity back to the grid when you don’t need it (export tariff).
- Tax free for individuals.
There are 3 saving streams produced by a PV system:
The Feed In Tariff (income)
- The Feed-In Tariff is paid quarterly, against the metered output of the system. The amount paid per kWh depends on the system size.
- The tariff is payable for 20 years.
- The rate per kWh is index linked and will go up each year in line with inflation (specifically the Retail Price Index).
- Use the energy you generate for FREE.
- Every unit you use is one less you have to buy. The average peak electricity cost is currently 15p per unit.
- Note that most systems don’t include batteries. So if the electricity generated is not used instantaneously, it gets exported back to the grid for someone else to use.
- The Export Tariff is also linked to inflation.