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Solar Photovoltaic Systems
The world is currently dependent on fossil fuels for
energy
There are two major issues which makes this unsustainable
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First, fossil fuels are finite and will eventually run out.
Secondly, when burned they release large volumes of carbon dioxide (CO2)
into the atmosphere, destabilising the planet’s climate.
Solar photovoltaic technology is a clean, reliable and
readily available alternative.
It is used to create carbon emission free electricity by
using silicon cells (semi-conductors) which produce electric power
directly from daylight. When light shines on the semi-conductor, the
electric field across the junction between these two layers causes
electricity to flow.
The greater the intensity of the light, the greater the
flow of electricity.
The earth receives a continuous power input from the sun of
120,000 terawatts. An unimaginably huge amount of energy which completely
dwarfs the capabilities of fossil fuels or nuclear fission; and it is
clean and free.
Use of solar PV has increased dramatically over the past
ten years.
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Last year, Belgium and the Czech Republic each installed
more than ten times the solar PV capacity installed in the UK.
In 2008, Germany alone installed 1.5 GWp of solar PV.
That’s the equivalent of 750,000 domestic solar PV roofs in
a single year. By contrast, in 2008 the UK installed just 0.3% of this
figure or the equivalent of just 2,200 domestic solar PV roofs.
We are barely scratching the surface of the huge potential
of solar PV technology in the UK.
Independent research carried out by Element Energy for the
2008 Renewable Energy Strategy consultation suggested that the feed-in
tariff could deliver over 18 TWh from non domestic solar PV alone by 2020.
That’s more than the predicted output of the proposed Severn Barrage and
to a quicker timescale.
The Feed-in Tariff
1. ‘Feed-in Tariff’ or ‘Clean Energy Cashback’ Scheme -
Are they the same thing?
Yes. ‘Feed-in Tariff’ is the internationally recognised name for
incentives which guarantee rewards for producers of clean energy over a
period of years. The UK government has chosen to call the UK version the
‘Clean Energy Cashback’ Scheme, presumably because they think it’s a
better, more descriptive name.
2. Where does the money come from?
The money to pay the producers of green energy comes from a small levy on
every energy consumer.
We Support Solar has calculated that even if the government were to add
another 10p to every level of the FIT the levy would still not amount to
more than 7p per week being added to the average UK bill: A small price to
pay for sustainable energy security.
3. How much money will I make if I install solar?
It all depends how much you install, where you are and which way your
solar faces.
Say you have a south facing roof (south is best, but east and west still
work too) at about a 35 degree pitch in southeast England and installed a
2.5kWp (roughly 20 square meter) system.
That would cost you about £12,500 at today’s prices. The Government grant,
available until April 2010, is worth £2,500 So your system will only cost
£10,000 with the grant.
A 2.5kW PV system will generate about 2,125 units (kilowatt
hours kWh) of electricity per year and the generation tariff is proposed
at 36.5p per unit. As well as receiving the generation tariff for every
one of those units, you’ll typically use about half of that in your house,
and export the rest to the grid, resulting in a payment for the exported
units at 5p/unit. And, if you use half the electricity that is generated,
you save buying regular electricity at 13p / kWh:
Income from generation tariff (2125 x 36.5p) = £775
Income from electricity sales (1062 x 5p) = £53
Savings on avoided electricity purchases (1062 x 13p) = £138
Total annual income + savings = £966
On your investment of £10,000 you could get back
approximately 9.7% per year.
The amount might vary a little each year depending on electricity prices,
but that’s a pretty healthy investment. Over the 25 years for which it is
proposed the tariff is guaranteed, we estimate you’d earn nearly £20,000
based on this example, which will give you a modest profit on your
original outlay.
And the great thing about solar PV is its life span is even longer than
the tariff, so you would carry on benefiting from free electricity for
years to come!
4. How do I join and by when do i need to sign up?
At the moment we are in a ‘once in a lifetime’ situation where home owners
qualify for BOTH the original government grant AND the ‘Clean Energy
Cashback’! But that will end in April 2010, then you will just get the
Tariff. People who sign up in the year April 2010 - April 2011 will get
the best rate for the duration (25 years) of the tariff. If you sign up in
the next year (April 2011 - April 2012) under the current government
proposals you will get 7% less every year for the duration of the tariff,
the next year 7% less again… and so on.
The ‘degression’ of 7% per year is something we would like
to see the government change, for example in Italy the FIT ‘degression’
rate is only 2%. But regardless of whether they do or don’t, if you are
going to get solar installed and sign up, do so as soon as possible!
We don’t know exactly how you will join the ‘Clean Energy Cashback’
scheme, since the government have not finalised the details yet.
Presumably you will need to send off a few forms and a copy of the invoice
for your system to prove how big it is. Your solar installer may do this
for you. We will add more details on this as soon as they are announced
but for now all you need to do it get your solar system installed and hang
on to your invoice!
5. What if I move house?
If you get solar installed and start claiming the Feed-in Tariff you will
have lower bills AND a steady income from the FIT payments. This means you
will be able to sell your house at a higher market value (both for the
capital you have spent on the system AND the savings and income, which are
guaranteed for 25 years). Then you simply sign over the FIT paperwork to
the new owner and they take over the system with the house.
6. Is it just for homes?
No, the following list details the different rates of the FIT for
different building types and system sizes:
If you own a business with a large roof and/or high electricity usage this
could be a very wise time to invest!
Less than 4kWp on a new building = 31 pence/kWh
Less than 4kWp on an existing building = 36.5 pence/kWh
4-10kWp = 31 pence/kWh
10-100kWp = 28 pence/kWh
100kWp-5MWp = 26 pence/kWh
Ground mounted (systems not on a building) = 26 pence/kWh
Additionally you’ll get another 5 pence/kWh for every unit you export to
the grid.
7. When will we know what the final cashback rates will
be?
We don’t know exactly. The consultation finishes on the 14th of October
2009 and then the government will deliberate for a while, hopefully
announcing the final numbers before Christmas to give potential solar
customers and the industry time to plan for April 2010. The numbers and
rates quoted above are just proposals at the moment.
8. Why is now the best time to install solar on my home?
At the moment we are in a ‘once in a lifetime’ situation where new solar
PV installations qualify for both the CURRENT government grant and the
‘Clean Energy Cashback’ scheme. But that will end in April 2010, then you
will just receive the Cashback. So NOW IS DEFINITELY THE BEST TIME TO GO
SOLAR.
9. Will the scheme cover Solar Thermal as well?
No. The scheme only covers Solar Photovoltaics.
For updates on this information please
click here
Information taken with permission from
www.wesupportsolar.net
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