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.