Maximizing the Profits and Savings from Your Solar Panels

Solar panels come with a major financial incentive attached. Between the savings on your electricity bill and the FiTS payments from your electricity supplier, you can see a profit to the tune of £600 to £1000 per year, much of that in the form of tax-free tariff payments. If you’ve installed solar panels or a solar PV system, it only makes sense to maximize your profit and earn as much from it as you can. These strategies can help.

Monitor Daytime Electricity Usage

Your solar panels generate electricity during daylight hours and your electrical system will draw on that electricity before it imports any from the grid. The first step toward getting all the benefit you can from your solar panels is to know how much electricity you use during the day and how much electricity your solar panels generate during the daylight hours. Once you know how much electricity you use as opposed to your generation capacity, you can make adjustments to your usage patterns.

Shift Nighttime Electricity Usage to the Daylight Hours

If you are generating more electricity than you are using over the course of the day, shift as much as possible of your electricity usage to the daytime hours. If you’re not already doing so, perform high-electricity usage tasks, such as running the Hoover, dishwasher or washing machine, during daylight hours.

If you’re not home during the day, use timers to start appliances that you’ve set up in advance to take advantage of the free electricity from your solar panels.

Reduce Your Electricity Usage

You are paid for every kWh of electricity generated by your solar panels. You are paid more for every kWh of electricity generated by your solar panels and exported to the grid. You pay for electricity that you import from the grid – that is, electricity that is not generated by your solar panels. Here is the order in which you profit most from the electricity generated by your solar PV system:

Solar PV generated power used in your home gives you the biggest bang for your buck. Not only do you get the FiTS payment – 43.3p to 21p, depending on the date your installation was approved – you also save the amount you would have paid your electricity supplier. DECC estimates the average price per kWh currently is about 14p, so every kWh of solar panels generated power you use will save/earn you about 35p to 57p.

The next most advantageous power profile is exporting electricity to the grid. Currently, power suppliers are allowed to estimate your export at 50 percent of your electricity usage. You will be paid the generation tariff plus the export tariff for all electricity you export to the grid. The export tariff is currently 3.1p, so you’ll receive 24.1p to 46.4p for every kWh of solar panels electricity exported to the grid.

Keep in mind that if your electricity usage during the day is greater than the amount of electricity currently being generated by your solar panels, you’ll end up paying the high daytime rate for your electricity, so it makes sense to keep your electricity usage on the low side and avoid that scenario.

Once your solar panels are installed, you can monitor your electricity usage and generation to help you figure out the best energy strategy for your home.

Important Steps to Qualify for Solar Panels FiTS

The Feed-in Tariff Scheme is a powerful incentive to opt for solar panels on your roof. The benefits of deriving part of your energy from a solar PV installation are many. They include savings on your energy bill and income from two different tariffs when you generate your own electricity. Expert estimates on the amount of income and savings you can expect when you install solar panels range from £100 pa in energy savings to £570 pa in combined generation and export tariffs – and those are median figures. Many installations will actually generate considerably more in both electricity and income.

There are, however, several important things to do if you intend to participate in the FiTS. Failing to meet any of these requirements can reduce the amount of the tariff for which you qualify or eliminate you from the program entirely.

EPC Rating

As of 1 April 2012, only homes with an EPC rating of D or better will qualify for the full tariff, though some homes with a lower rating may qualify for a lower rate. If you already have an EPC D rating, you’re all set. If you have a lower EPC rating, your solar panels can count toward increasing your score, but you must have the EPC survey done after your panels are installed.

Hint: Have an EPC survey done before you order solar panels to find out what you can do to increase your chances for acceptance. It may be as simple as changing out your light bulbs for energy efficient ones or putting in weather stripping and cavity insulation.

MCS Certification

In order to qualify for the FiTS, your solar panels must be installed by an installer who is certified under the Microgeneration Certification Scheme. Before contracting with a company to install your solar PV system, check its status with the MCS to ensure that your system will qualify for the FiTS.

FiTS Electricity Supplier

FiTS payments are actually made by your electricity supplier, and your supplier must participate in the FiTS in order for you to be part of the scheme. The “big six” energy suppliers are required to offer FiTS payments by law, but some smaller suppliers may not participate. Check to make sure that your energy supplier participates in the scheme. If not, shop around for a supplier that does.

Solar panels are a good idea in and of themselves. They supply clean, silent, green electricity to power all of your household appliances and systems. The government encourages the adoption of solar PV with the Feed-in Tariff Scheme, however, and it’s silly to miss out on the advantage because you missed out on some paperwork.

What You Should Know About Solar Panels Installation

If you want to take advantage of the Feed-in Tariff scheme when you install solar panels on your roof, you’ll need to have your solar PV system installed by a certified solar PV installer. The process involves a consultation with the installer. Understanding what to expect when you decide to explore your renewable energy options can help you choose a reputable installation professional. These tips can help you evaluate the solar panel installers you interview.

Choose an MCS Certified Installer

The Microgeneration Certification Scheme is a quality assurance scheme that is regulated by the members of the solar PV industry. In order to carry the MCS certification, a solar panels installer must agree to meet rigorous standards of quality for both products and behavior. In order to qualify for participation in the FiTS, your solar PV system must be installed by an MCS certified installer.

What a Solar PV Installer Does

Obviously, an installer installs solar PV systems, but the scope of work is actually considerably broader than that. A qualified installer of solar panels can give you accurate advice on choosing the best solar PV system for your needs, perform surveys to determine the suitability of your property for solar panels and provide you with an accurate quote that includes both how much your solar PV system will cost and how much benefit you can expect to receive from them. In addition, a qualified installer can mount structures for your solar panels, install the system and the wiring, test your system and provide maintenance for it as needed.

What to Expect from a Consultation

When you schedule a consultation to determine whether solar panels are a good fit for your home, the company may send a salesman or a certified installer. A salesman can describe the company’s products and services for you, but he can’t tell you much more than that. An installer, on the other hand, can survey your property and determine whether it is suitable for solar panels. He or she can estimate how much electricity generation you could realize from various sizes and configurations of solar panels and give you an actual detailed quote that includes both the cost of the system and the likely benefits you’d receive from it.

In order to provide that kind of detailed quote, the consultant will need to be able to access your roof from the inside and out and may ask to look around your house to determine the best place to locate your inverter and run the wiring. He will have questions for you to help him determine your typical electricity usage so that he can estimate how much you can expect to realize if you install solar panels. In all, the MCS estimates that a consultation of this sort will take up to two hours.

Scheduling a consultation with a certified solar panels installer is the best way to find out what benefit you could reap by installing a solar PV system. Most installers will do a consultation at no cost to you, so feel free to call around and schedule consultations with up to three installers to get your best quote.

Five Advantages of Roof-Mounted Solar Panels

There’s no doubt that renewable energy sources will become an increasing portion of the national energy mix. Over the next several years, the UK has committed to increasing the share of energy production derived from renewables to 15 percent by 2020. Rooftop solar panels are expected to take a major role in reaching that goal. In order to reach the goal, the government needs a big buy-in from the general public. That’s the major reason for the Feed-in Tariff Scheme for microgeneration, which includes solar panels and solar PV systems. It’s all well and good to ask folks to man up and pitch in, but there are some exceptional advantages to choosing roof-mounted solar panels for your renewable energy needs.

Save Money on Your Electricity Bills Every Month

The sun’s energy is free. Once your solar panels are installed and working, every kilowatt of electricity generated by your solar PV system reduces the amount of electricity you have to buy from your electricity supplier. The Department of Energy and Climate Change estimates that the typical home can replace 50 percent of its electricity use with free solar energy.

You Retain Access to the Grid When You Need It

The electricity generated by your solar PV system doesn’t have to travel over the grid. Your solar panels are generating electricity for your use on site. While grid-tied solar systems only generate electricity during daylight hours, you’ll still be able to draw electricity from the grid when your solar panels can’t meet your needs, such as after dark.

Avoid Disruptions to Your Electrical Service

It happens every summer and during other times of peak electrical usage. The electricity companies reduce service and you make do with less power than you need, or deal with no electricity at all for hours at a time. Most electricity suppliers schedule these power downs during the day when they’ll affect fewer residential customers. If you’re generating your own electricity, you won’t be affected at all by the disruptions during the daylight hours.

Distributed Solar Electricity is More Secure than Power Plants

One often overlooked advantage of having a widely distributed system of rooftop solar panels is energy security. A natural or man-made disaster or attack on a power plant can take out the power in large blocks of a region. When more people have solar panels and are generating their own electricity, the power system is more secure.

Earn Income from Your Solar Panels

The FiTS pays owners of solar panels for the electricity generated by their solar PV systems, even if they use all of the electricity in their own homes. If the panels generate more power than is used in the home, the owners of the system earn even more. Currently, the tariff is 21p per kilowatt hour of electricity generated and an additional 3p for every kilowatt hour that’s exported to the grid. The payments are guaranteed for 25 years, are tax-free and can amount to as much as £1,000 per year.

Renewable energy systems are the wave of the future but they’re here today. Learn more about the benefits of installing solar panels on your roof from a local solar PV supplier or installer.

Five Reasons to Choose Solar Panels for Your Home

Solar panels have been big news lately, thanks to all the buzz surrounding the recent changes to the FiTS tariffs. Many of the original skeptics of the tariff scheme are nodding sagely and clucking their I-told-you-so pronouncements. If the reduction in the tariff rates have you rethinking whether solar panels are a good idea for your electricity needs, consider these facts.

The Cost of Solar Panels Has Come Down Dramatically

In the very short time since the FiTS was instituted, the cost of solar panels and solar PV installation has dropped considerably. It will cost you less to install solar panels now than it would have cost two years ago. Those reductions were due mostly to the influx of inexpensive solar modules from China and from advances in solar technology manufacture. Prices have stabilized now, and aren’t likely to slide down much further so there’s no real benefit to waiting.

The Cost of Electricity Is Rising Month to Month

Every few months, you see a new report about rising electricity costs. As long as you get the bulk of your electricity from a supplier, you’re captive to those price rises. Solar panels help reduce your monthly electric bill by supplementing or replacing the electricity you have to buy from your electricity supplier.

Solar Panels Provide Free Electricity

Once your solar PV system is installed, the electricity generated by your solar panels is completely free. Sunlight costs nothing to transport, and since the solar panels are located right on your own roof, the electricity doesn’t have to run over the grid. Every unit of solar electricity you use costs you nothing. In fact, since it replaces a unit of electricity you buy from your electricity supplier, you’re saving money with solar panels.

Solar Panels Generate Income

If your solar PV system qualifies for the FiTS – and most do – your solar panels will generate income for you every month for 25 years. Even at the reduced 21p per kWh tariff, the typical home system will generate up to £1,000 pounds pa. And that’s tax-free income, so it’s a pure profit for you. Depending on your actual electricity use, you could sock away between £13,000 and £27,000 over the life of the tariff system.

Solar PV Systems Are Silent and Clean

Unlike other forms of renewable energy, solar panels make no noise at all in operation, nor do they generate soot or pollutants. When you install a solar PV system, you’ll be reducing your use of carbon-based fuels and contributing to meeting the UK’s renewable energy goals.

The exact figures for how much you can save and how much income your solar panels can generate depend upon your system, your location and your energy use. A solar PV installer can provide you with a tailored quote that includes those figures. For more information on how you can profit from installing solar panels on your roof, contact a local installer.

Seven Basic Facts About Solar Panels

Not sure whether to jump on the bandwagon to install solar panels for your home? Here are seven basic facts that can help you make your decision.

You don’t have to understand how solar panels work to use them anymore than you have to be an electrician to turn on a lamp. In a nutshell, your solar PV system consists of solar panels and an inverter. The panels generate DC electrical current and feed it through the inverter, which transforms it into AC current, exactly like the electricity you currently buy from your power supplier.

Solar panels generate electricity from light. While direct sunlight produces more electricity, they’ll generate electricity even on a cloudy day. And since the sun’s heat doesn’t matter to solar PV panels, your solar panels will generate just as much electricity on a sunny winter day as they do on a sunny summer day.

Most homes in the UK can generate about 50 percent of the electricity they use on an annual basis. That’s a savings of 50 percent on your current electricity bill. If you combine solar panels with other efficiency measures, such as A-rated appliances, insulation and low energy lights, you can save even more.

Your solar PV system is connected to the energy grid. That means it won’t store any energy your solar panels generate. If your system generates more electricity than your home is using at the moment, the excess will be exported to the grid and you’ll be paid for it. If you need more electricity than your solar panels are currently producing, you’ll be able to draw from the power outlets just as you do now. That means you’ll always have power when you need it, and if you make more than you need, you’ll be paid for it.

The government will pay you to generate electricity, even if you use it in your own home. The Feed-in Tariff Scheme pays people for every kWh of electricity your solar panels generate. As of 1 April, the rate will be 21p per kWh for all the electricity you generate with an additional 3p per kWh for all the electricity your system exports to the grid.

The solar panels you install today will pay back their carbon load within five years. Your solar PV system will generate 20 years or more of clean, green, carbon-free electricity.

Solar panels have no moving systems. Unlike wind turbines and gas generators, they make no noise and require very little maintenance. That keeps your cost of ownership low.

Learn more about the requirements for installing a solar PV system and the benefits of solar panels from a local solar PV installer who can evaluate your property and give you a better idea of how much you can save when you install solar panels.

Solar Panels Generate Energy and Income

If the thought of having solar panels installed on your roof seems a bit intimidating and a whole lot expensive, you might be surprised at how much economic sense a solar PV system actually makes. Much of the information people believe they know about solar panels is based on outdated figures. While a solar PV system certainly isn’t cheap, it’s probably not as expensive as you think, even before you start offsetting the installation and purchase cost of solar panels and an inverter.

In fact, the price for solar panels has come down by about 40 percent since 2009. Currently, you can install a solar PV system on your rooftop for about the cost of a new automobile. Unlike the automobile, though, your solar panels can be expected to last at least 20 years. And unlike the automobile, which will cost you a constant stream of cash for upkeep and fuel, your solar panels will start saving you money the moment the electrician flips the switch to start you using solar power. You’ll save money on your power bill every month and get payments from your electrical supplier for power you export to the grid. In addition, if you qualify for the Feed-in Tariff Scheme – which most small solar PV systems do – you’ll receive a guaranteed, tax-free annual income from your solar panels for 25 years.

The Cost of Solar Panels

The cost of a solar PV system varies widely depending upon the size of the system, the type of solar panels used and incentives that may be provided. Nationally, the average cost of the typical residential solar system is less than £10,000 – often considerably less.

Solar PV Savings

Like cost, the savings you’ll realize from your solar panels will vary widely. The more electricity your solar panels generate, the more money you’ll save. Thus, a larger system will return bigger savings than a smaller system, and a solar PV system in some parts of the country will generate more electricity than in others. In addition, how much you save will depend on how much you pay your utility company for your electricity currently and on your electricity usage patterns. DECC says that many UK homes can expect to generate 50 percent of the electricity they use from solar panels over the course of a year.

Feed-In Tariff Bonus

In addition to the savings, eligible solar PV systems will qualify for a tariff payment for every kWh of energy produced by their solar panels, even the electricity used in their own homes. As of 3 March, 2012, the rate is 21p per kWh, with an additional 3p tacked on to each kWh your solar panels export to the grid instead of using. Depending on the size and efficiency of your solar PV system, the payments could total several hundred quid a year, and are guaranteed for 25 years.

Payback

You can do the math yourself on the estimated time it will take for your solar PV system to pay itself off, but DECC estimates that for most people, it will take between 10 and 12 years. After that, your annual savings and tariff payments are pure profits, generated by your solar panels. And you thought they were only generating electricity!