Solar Panels And Feed In Tariff Scheme
To increase the purchase and use of photovoltaic solar panels in the UK, a scheme to pay the homeowner has been implemented. Originally pushed by environmental groups, the government assures that the electrical company will pay homeowners a certain monthly rate for energy generated from renewable sources.
To offset the usual long-term payback a person would realize from purchasing a system, the FIT or Feed in Tariff scheme helps recoup costs in about a ten year period. The rate for an installation on an old house are 41.3p/KWh, installation on a new home is 36.1p/KWh. Both rates are for systems up to 4KW.
In 2011, in accordance with the original scheme, the rate paid on old homes increased to 43.3 pence and to 37.8 pence for new homes. This is to keep the payments in line with current inflation. Again, these rates are for 4KW or lower installations. Higher capacity installations receive slightly lower rates as the capacity increases.
Note that the tariffs are paid to the entity that purchased the units. If the homeowner buys the units and has a company install them, the homeowner received the tariff rate. However, many companies, installers and suppliers, now offer free pv panels and installation. These companies then receive the tariff rates while the owner of the home gets the free electricity.
Another requirement to receive the tariff is that the company you purchase the units from or the company that is giving them to you is MCS certified. MCS stands for microgeneration certification scheme. Paperwork will have to be supplied to the electricity company before any payments are approved.
Whoever receives the payments will realise two rate lots. One for energy produced and used (quoted above) and one for surplus energy (about 3p/KWh). This program with current rates is in effect until the March 2012 deadline. To learn more search the internet for FIT, solar panels, or photovoltaic cells.