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!

Beware of Shady Solar Panels Companies

Solar panels offer many benefits to property owners – clean energy, lower energy costs and, thanks to the tariff scheme, a steady income from electricity generation for 25 years. Unfortunately, the rush to install solar panels has brought many get-rich-and-run firms out of hiding to take advantage of consumers.

Even more unfortunately, many of these companies can fleece consumers, close their doors – disappearing with deposits paid for solar panels that will never be delivered – and open shop under another name to do it all again. The news website “This Is Lincolnshire” reported earlier this week about one such company that promised solar panels and took deposits after knocking on doors, then closed up shop.

At least one customer reported that he finally got his solar panels, but they were installed by another company that claimed to have bought the contract from the original group. Most of the Lincolnshire property owners, however, expect that they’ll never see their deposits again.

How to Avoid Dodgy Solar Panels Installers and Shady Solar PV Companies

The REAL Assurance Scheme aims to help homeowners avoid rogue installers, outright cheats and solar companies that do shoddy work. The organization, which is made up of solar PV installers, holds its members to high standards and requires certifications of all members listed on the REAL website. They also offer a number of tips to help property owners ensure that they contract for solar panels with legitimate, qualified solar PV installation companies.

Don’t do business with companies that come knocking at your door. Solar panels installers are jammed up with business. They don’t need to send people out knocking on doors or send out blind mail to your Inbox. Only do business with solar PV installation companies that you approach, and only approach those that are members of the REAL Assurance Scheme.

Check the Energy Saving Trust website for information about realistic costs and returns for solar panels in your area. You can enter your post code and other information and get an assessment of how much you can expect to gain from installing a solar PV system. That information will help you evaluate how truthful a salesperson is being with you.

Don’t sign with the first company that offers you a contract, especially if the company is pressuring you to close the deal immediately. Get at least three quotes from three different solar panels installers, and ask for references and testimonials from previous customers. Be sure to contact them yourself.

Always read any paperwork completely before signing it.

Only sign a contract with a company that holds a current MCS certificate.

The vast majority of solar PV installers are legitimate companies that install high-quality solar panels and systems. Use these tips to make sure you’re dealing with one of them.

Proposed Changes to Solar panels FiTS Include Higher Energy Ratings for Homes

Most people are aware of the proposed change to the FiTS rate, dropping the tariff from 43.3p to 21p per kWh beginning with 1 April. Another part of the proposed changes is receiving much less notice, but will also affect those who install solar panels with the intent of cashing in on the tariff scheme. In addition to the tariff reduction, the government has placed two alternate proposals of new requirements for homeowners to meet in order to qualify to receive payments through the FiTS.

Both proposals have to do with increasing the energy efficiency of the properties on which the solar PV system is installed. Increasing the energy efficiency of the properties helps reduce the use of electricity in the home, which will help reduce the running costs of the feed-in tariff scheme over the long run. It also helps promote the overall goal of reducing UK carbon emissions and reliance on carbon-based fossil fuels.

The two alternate proposals as laid before Parliament for consideration apply to solar panels installed in homes after 2 March 2012. In order to qualify for the 21p tariff rate as of 1 April 2012, the property owner or occupier may be required to meet one of the two following conditions:

The owner or occupier must bring the property up to an Energy Performance Certificate rating of C or above.

The owner or occupier must undertake any measures identified on an EPC that are eligible for Green Deal financing and will require no additional financing.

Compliance with the proposed new energy efficiency guidelines mean that it will likely cost more to become eligible for FiTS payments, but the required improvements are also likely to increase energy savings, including electricity costs. Installing cavity insulation, for example, typically costs less than £500, but can save you about £400 annually, providing a rather impressive return on your investment. When coupled with the average electricity savings realized with solar panels – up to £190 annually – the additional energy saving measures will only quicken the rate of return on your investment in solar PV.

These figures are based on the average returns projected by the Department of Energy and Climate Control. Your rate of return for solar panels will depend upon a number of factors, including your geographic location, the amount you currently pay for electricity and your typical patterns of electrical usage. DECC estimates that many properties in the UK can generate up to 50 percent or more of their electrical energy from a solar PV system. A local solar panels installer can provide you with more personally tailored information to help you make your decision about whether solar PV makes sense for your home.

Watch Out for Cowboys When Buying Solar Panels

Solar panels can save you money, decrease your reliance on the electric companies and earn you a bit of ready cash each year. Thanks to a very generous tariff provided by the government and the unexpectedly rapid drop of prices for solar PV systems, solar panels very quickly became one of the hottest home investments of the past couple of years. And unfortunately, as happens with hot investments, the cowboys have come out from under the woodwork to reap as much of the cash windfall with as little work as possible.

These are the same folks, say consumer advocacy groups, who have in the past peddled replacement windows contracts and blacktops for driveways, usually delivering substandard products if they deliver anything at all. As often as not, these unscrupulous operators pocket the deposits and move on. The recent news about the government’s failure in its court appeal about lowering the solar panels tariff has kicked their activity into high gear. They’re using the looming change in tariff rate as a cudgel to convince wary homeowners to jump now in order to get the high 43.3p tariff rate before it goes away. The consumer advocacy groups are warning consumers to be wary of being taken in by these cowboy solar panels dealers and offering the following tips on recognizing bad actors before they cheat you.

Don’t buy solar panels from anyone knocking door to door. Reputable dealers don’t need to scare up business this way. They have plenty of customers ringing them up to make appointments.

Be wary of anyone who tries to pressure you into signing a contract for a solar PV system right away, citing the need to lock in the 43.3p tariff rate before it goes away. Unscrupulous dealers are trumpeting the recent court decision and advertising that it guarantees the 43.3p rate for solar panels until March. In fact, that’s a misrepresentation. While those who have already installed solar panels and are registered for the FiTS will receive the higher rate for 25 years, the chance that those who install solar PV between 3 November 2011 and 1 April 2012 will receive that rate for more than a few months is very slim. Don’t let it be a deciding factor in whether you purchase solar panels now or wait until you are sure of the distributor.

Check out any solar panels installer that contacts you with the REAL assurance scheme, an industry scheme set up by the Renewable Energy Association to self-regulate the industry. Reputable installers will have an MCS certification and be listed on the REAL website.

Even at the reduced tariff rates, solar panels offer an incredible investment opportunity for many homeowners. Be certain that you’re dealing with reputable installers and you’ll be sure to reap the full benefits of changing to renewable energy with a solar PV system.

Is Your Roof a Good Fit for Solar Panels?

Despite the uncertainty surrounding the subsidies for solar panels, replacing some of your electricity with free electricity generated by your own solar PV system can save you a few hundred pounds a year, and provide you with a steady stream of tax-free income for the next 25 years. The exact amount of savings you’ll realize is dependent on how much electricity your solar panels will generate, and the amount of electricity your solar panels will generate is dependent, in part, on your rooftop. Here are the basics about the perfect roof for a solar PV system. Does yours fit the bill?

Location

In general, if your rooftop is located within the UK, there’s enough daylight and sunlight available to provide up to 50 percent of the electricity you need each year, and perhaps even more. The UK’s geographic location and climate is similar to that of Germany, which has a very successful solar PV system.

Orientation

The best roofs for solar panels installation face within 30 degrees of south. If you have a roof surface that faces south, southeast or southwest – or any orientation within that angle – your roof is probably suitable. Solar panels installed on your rooftop will probably receive enough sunlight to generate about 50 percent of the energy you need to run your home.

Pitch

The pitch of your roof is another important factor in deciding its suitability for solar panels. The ideal roof has a 30 degree pitch, but any pitch between 15 and 45 degrees will receive enough sunlight to generate enough electricity to make your investment worthwhile. If your roof has a lesser pitch than that but is otherwise ideally situated, many solar PV installers will install solar panels on your roof mounted on A-frames to place them at the optimal angle.

Size

The surface of your roof – or the suitable portion of it, at least – must be large enough to hold a solar panels array large enough to generate enough electricity. The required size varies, depending on the generating capacity and type of solar panels installed. A solar PV installer can talk to you about the various options available that may fit your roof.

Obstructions

The final factor in deciding whether your roof is suitable for solar panels is the amount of sunlight it receives over the course of the day. Objects that shadow your roof can reduce the efficiency of your solar PV system. In general, solar installers look for roofs with no obstructions to cast shades on the solar panels.

The best way to find out if your roof is a good candidate for solar panels is to contact a local installer of PV systems and request an evaluation and a solar panels quote.

UK Contributes to Increase in Solar Panels Adoption in 2011

Are you considering solar panels for your roof? If so, you’ll be joining a growing trend of home and property owners throughout the EU. According to a report from Solarbuzz, sales in the solar panels market in Europe increased by 23 percent in the last quarter of 2011. While a big percentage of that increase was in Germany, with solar PV sales that were 63 percent higher in 2011 than in 2010, the UK did its own super surge. According to DECC figures, the solar capacity of the UK increased tenfold in the last two months of 2011. You read that right. There were enough solar PV systems installed in 2011 to increase the solar capacity of the UK by a factor of ten – that’s 10 times the wattage that had been installed in all the years previous.

Dr. Alan Turner, Vice President of Solarbuzz, noted that most people were surprised by how strong the market was in the fourth quarter of 2011, particularly in Germany and the UK. The overall growth in the solar panels industry last year was 18 percent. The last quarter’s growth substantially increased the growth figure.

Surprisingly, the growth wasn’t damaged by major cuts to incentive programs that subsidize solar panels and solar PV system installations in Germany, Italy and France. The UK Government also announced an unexpected early reduction in the feed-in transfer subsidy that was expected to support growth in the solar industry for some time. The reduction, which was intended to cut the FiTS rate from 43.3p to 21.1p effective the beginning of December. Thousands of property owners jumped into the queue to have solar PV installed before the rates dropped in the hopes of locking in the 43.3p solar panels subsidy for 25 years.

A collection of solar industry players challenged the Government’s decision in court and won, successfully stalling the FiTS reduction when the court declared that the short notice of the reduction in tariff was “legally flawed”. The Government’s appeal to the High Court was successfully rebuffed in January, and is appealing the decision to the UK Supreme Court. Until the Supreme Court hears the appeal and reaches a decision, the solar PV industry is in a state of uncertainty.

The lower price for solar panels also contributed to the surge in solar PV sales and installations. The cost of solar panels and solar PV installation fell at a surprisingly fast rate, particularly during 2011, making the UK’s very generous FiTS especially attractive. The 43.3p rate could be available to those who install solar panels before 3 March, though there’s no guarantee of that. There is, however, a guarantee of at least 21.1p per kilowatt hour subsidy, which most experts say is still a good deal for those planning to install solar panels.

Quick Facts About Solar Panels

Solar PV systems are among the cleanest energy technology available today. A solar PV system is made up of one or more solar panels and an inverter to convert the direct current (DC) into alternating current (AC) to power your appliances and other electrical needs. The solar panels are made up of solar cells, which are the basic component of the solar photovoltaic system. Today’s solar cells may be made of silicon or of another semiconductor substance – a substance that conducts electricity. Some of these substances are natural. Others are synthetic. No matter which they are, the energy expended in mining and manufacturing solar panels for solar PV systems is offset in just about a year of use. After that year, the electrical power generated by solar panels is essentially pollution free.

The first step toward deciding whether or not solar panels are a good choice for your energy needs is a realistic assessment of your current energy use and your energy needs. Knowing your peak electricity usage allows you to figure out how large a system you’ll need to meet your power requirements. In most of the UK, you won’t be able to completely offset your electricity usage with solar panels alone, but the Department of Energy and Climate Change estimates that most homes in the UK can generate about 50 percent of their electricity needs with a solar PV system. Some consumers who have installed solar panels report saving up to 70 percent off their typical energy bill.

Because solar cells are incapable of storing electricity and can only generate electricity during daylight hours, a home with solar panels must also have another source of electricity in addition to the solar panels. For some, that means a battery backup system, where any electricity that is not immediately used is stored in a connected battery and drawn upon at need.

In the UK, most solar PV systems are grid-tied systems rather than battery backup systems. A grid-tied system is connected to the conventional energy grid and draws power from it when the solar panels don’t generate enough power for the home’s immediate use. The electricity in grid-tied systems runs in both directions, though. When your solar panels generate more electricity than you need for your immediate requirements, that excess is exported to the power grid for use by others. An electrical meter measures both the amount of electricity that you draw from the grid and the amount of electricity you export to the grid.

One of the major reasons for the popularity of grid-tied solar PV in the UK is that they qualify for the Feed-in Tariff Scheme, which pays property owners for electricity generated by their solar panels. The FiTS is designed to help you recover the cost of solar panels installation more quickly and pay you an incentive for converting your home to use solar panels for power. If this information piques your interest, contact a contractor in your area that installs solar PV systems to learn more.

How the Changes to the FiTS for Solar Panels May Affect You

The recent proposed changes to the Feed-in Tariff Scheme have left a lot of people with many questions about the solar panels they’ve installed or are planning to install. The UK government has provided answers to many of these questions. If you’re uncertain about how the changes affect you, or want to understand more about the changes before deciding to install solar panels, these answers may give you the information you need.

Why is the government changing the tariffs, and why are the reductions so steep?  According to the government’s energy officers, solar PV is the most costly technology that is funded through the FIT scheme and is the dominant microgeneration choice for most people in the UK. Since the FiTS was introduced, the costs of installing solar panels has fallen by about 30 percent. The tariffs were always meant to decrease in line with the reduction in solar panels installation costs, but the original projected rate only reduced the rate by 9 percent, when the actual cost reduction was more than tripe that rate. Thus, the return on investment was more than double what was intended.

The reductions are in line with what is happening throughout the EU. Germany, France, Spain, Italy and Belgium have already reduced the tariffs for solar PV systems in the past year.

Is it still financially viable to install solar PV systems that are under 4kW?  When the feed in tariff scheme for solar panels was introduced, it was meant to deliver a rate of return of 5 to 8 percent for solar PV systems that were well-located. Taking into account the reduction in installation costs for solar panels and the projected cost of electricity, the new proposed tariff of 21p will deliver a 4 percent tax-free rate of return for well-located solar PV installations.  Considering the changes in the investment market since the introduction of the FiTs, 4 percent is a reasonable rate of return on the investment in a solar PV system.

Does the change in the FiTs apply to the export tariff as well as the base rate?  At this time, the government has no plans to change the export tariff at this time. The export tariff applies to any electricity generated by your solar panels and exported by you to the national grid.

Will my solar panels be affected if they are already installed?  Only those solar PV systems with an eligibility date on or after 12 December 2011 are affected by the revised tariff rate. If you were enrolled in the FiTs before that date, your tariff will be paid at the 43p rate for the guaranteed period of 25 years. If your solar PV system was enrolled between 12 December 2011 and 3 March 2012, you will receive the 43p rate until April 2012. After that date, you will receive the 21p rate.

Is there enough capacity to deal with a rush to install solar panels?  The UK government estimates that there is plenty of inventory and capacity to deal with any acceleration in the ordering of solar panels and solar PV installations. Contact a local solar PV installer for more information.

Debunking Scary Myths About Solar Panels

Companies that install solar panels hear a lot of questions and objections to solar panels that are based on myths and outdated information. If you’ve been hesitant to invest in a solar PV system because you were afraid solar panels would make it harder to sell your house or that you wouldn’t get enough electricity for your needs, these answers should set your mind at ease.

Will My Solar panels Only Produce Energy When It’s Sunny?

That’s certainly a reasonable question here in the UK, where sunlight seems to be at a premium. However, solar PV systems don’t need a sunny day to produce electricity – they just need daylight. The sunnier it is the more energy they’ll produce, but in Germany, which gets about the same number of sunny days as we get in the UK, about 18% of the electricity used is produced by solar panels.

Do Solar Panels Have to Be Mounted on My Roof?

A south-ish facing roof is the best place to put solar panels, but it’s not the only place you can put them.  You can also have solar PV panels installed on a wall that faces south or even, if you have the room on your property and your local codes allow it, on a free-standing frame on the ground.

Does My Roof Have to Face South?

A south-facing roof is the best option for solar panels because it gets the most direct sunlight. However, if your roof is within 90 degrees of south – that is, oriented southwest or southeast or any direction between the two – solar panels will still generate enough electricity to make investing in a solar PV system a good idea.

Are Solar Panels an Alternative to My Normal Source of Electricity?

While some people completely switch over from traditional electricity sources to solar power, it’s far more common to install a grid-tied system. In a grid-tied system, you’ll use solar electricity when your solar panels are generating energy and draw from your usual electricity supplier when you need more than your panels produce. You don’t have to do a thing to switch between the two – it’s all automatic. You’ll never notice a difference between one power source and the other.

Will I Have to Get Planning Permission to Install Solar Panels?

In most cases, you don’t need special permission to install solar panels, though there are some exceptions. If you’re not certain, check with your council or local agency to find out what permissions are required to allow solar PV systems.

Do Solar Panels Go Wrong All the Time?

Actually, solar PV systems require very little maintenance at all. They have no moving parts and don’t require tracking systems to keep them aligned to direct sunlight. They don’t break down or wear out. The only part of your system that is likely to need replacing is the inverter, which will last about 10 years before it needs replacing.

Solar panels are an excellent investment both for your wallet and for our energy future. Don’t let misinformation and confusion keep you from investing.

Government Plans to Cut FiTS Subsidy for Solar Panels Delayed

A proposal by the government to cut the FiTS for solar PV installations and other small electricity generating projects was stalled in early December when the High Court ruled that the government plan was legally flawed. FiTS – the Feed-in Tariff Scheme – pays people to use electricity generated by their own solar panels rather than buying energy from traditional electricity suppliers. The program is an effort to boost adoption of solar PV systems and other microgeneration systems by the populace, and increase the proportion of renewable energy use in the UK.

To achieve this end, the government’s feed-in tariff scheme set up a schedule of fees to be paid to building and property owners based largely on the size and capability of the solar PV system. For most homeowners, that meant a payment of 43p for every kilowatt hour of solar electricity generated by their solar panels, and an addition 6p “export tariff” for every kilowatt hour that they feed back into the grid.

The scheme was designed with adjustable tariff rates, but comes with the guarantee that property owners would receive the rate fixed at the time of registration for 25 years. Thus, anyone who has registered their solar panels with the scheme already is guaranteed to receive the 43p rate for a full 25 years.

In November, the government announced that the FiTS had been successful beyond all expectations. In fact, the solar PV systems installed and registered in the last two months of 2011 increased the solar capacity of the UK by a factor of 10 – a milestone the government had not expected to reach before 2015. While that’s great news for the proponents of renewable energy, it stresses the fund established to pay out the tariffs. Because of that, the government proposed to reduce the FiTS for newly registered solar PV systems by half as of 4 January.

While the government’s own website now carries that pricing structure – 21.1p as of January 4 – the High Court has stalled the implementation of the plan, stating that the proposal was legally flawed. The government has now announced plans to halve the solar subsidy in April for solar PV systems installed after 3 March.

The government has also appealed the High Court’s ruling on its January proposal.

What This Means if You Install Solar Panels

If your solar PV system was installed before November, you are guaranteed the higher 43p rate for 25 years. Solar panels installed between now and 4 March may qualify for the higher 43.3p rate, depending upon the result of the government’s appeal. If you wait until after 4 March to install solar panels, your system will most likely only qualify for the 21p tariff. The lower rate will still be guaranteed for 25 years, and the Department of Energy and Climate Change estimates that at that rate, most homeowners will recover the installation costs of their solar panels in 10 to 12 years as opposed to 5 to 8 years.