Solar panel payments are lowered

There are many ways to save energy, and help the environment.  Microgeneration – the generation of heat and power by individuals using zero- or lowcarbon technology – is one way you can really make a difference. You can become a microgenerator by installing a wind turbine, solar photovoltaic panels, a small hydro-electric system, an anerobic digestion system, or a CHP scheme. The Government’s intention is to promote low-carbon technologies. That’s why the Feed-In Tariffs (FIT) scheme was introduced.

Payment for solar panels

The FIT is made of three elements:

• the generation tariff – paid for each unit of electricity produced, whether it's used in the home or not
• the export tariff – paid for each unit of electricity exported to the grid
• the savings made on your electricity bills – because you'll be generating some of your own household electricity, your bills will be lower.

The Bad News

Homeowners who install solar panels are now paid less for the electricity they generate - 16p/kWh, it was 21p/kWh.

These changes only affect solar panels and they also include:

• the length of time consumers will get the FIT for is reduced from 25 years to 20 years
• the export tariff, for every unit of electricity generated by the system and sent to the grid, will increase from 3.2p/kWh to 4.5p/kWh
• for houses with an energy performance certificate lower than band D the FIT generation rate drops even further to 7.1p/kWh.

The changes also only affect installations after 1 August 2012.

The Good News

Utility Warehouse will pay an extra 2p per kWh on top of the standard FIT Generation Payments for a minimum of two years, for all Gold Status customers. That's customers who take four services from the five that they offer - Electric, Gas, Telephone, Broadband or Mobiles.

Are Solar panels a good investment?

Whilst the FIT has been reduced, the cost of solar panels has dropped considerably. An average-sized 3kWp photovoltaic system now costs around £7,000 to £10,000, and I can recommend a good installer.

With the new rates of FIT, and the additional 2p per kWh on top of the standard FIT generation tariffs, solar panels can still be worth investing in.

If you would like to know more, contact me on 0770 3321215.