Solar Electricity (PV)

Costs: £4,500-£5,500 I Annual Savings: £560 I Payback: 10 years I Profit: £5000

You can generate cheap, green electricity from sunlight, even here in Britain.

Solar electricity systems capture the sun's energy using photovoltaic (PV) cells. The cells convert sunlight into electricity, and this electricity can power your lighting and appliances. You can receive payments for the electricity you generate, as well as for exporting any electricity you don’t use to the grid.

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The basics

The cells used in solar panels are now so efficient that they will work well anywhere in Britain particularly if you have a southerly orientated roof. A typical home PV system can produce around 50% of the electricity used in an average household per year (Department of Energy and Climate Change), saving around £140 on your electricity bills.

In 2010, the government introduced the Feed-in-Tariff scheme to encourage uptake of solar panels. Under this scheme, your energy supplier pays you for any energy that you generate using your solar panels, as well as any excess that you export to the grid. The average installation can make around £420 a year in FITs at current tariff rates. You can alternatively get the installation paid for using a loan from the Green Deal finance scheme.

Fitting panels is not a complex process, and you can get them fitted with very little disruption. You do need to ensure that you get a qualified installer to qualify for the FITs.

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FAQs

What is a Renewable Obligation Certificate (ROC)?
The government created an obligation for electricity suppliers to encourage homeowners to fit specific renewable micro generation systems. For domestic electricity generation, this system has now been superseded with the Feed in Tariff (FIT).
Do solar PV installation prices include the price of scaffolding?
Some PV installers do not include the cost of installing the necessary scaffold at your property when quoting costs. Make sure that you check this when comparing quotes from various installers.
Are there any grants available for installing solar PV panels?
The Feed in Tariff is a payback scheme rather than a grant scheme, and has replaced most grants for solar PV systems however, grants may be available from your local council - please contact them for details. The Feed-In Tariff pays you for the electricity you generate using your PV system, as well as any excess electricity generated, which you can export back to the Grid.
Can I heat water with solar PV panels?
Whilst PV panels do not directly heat water (this is what solar thermal panels do) they do produce electricity that can be used to do anything that you want to - even export it back to the grid for an extra payment. This electricity can be used to heat water if you have an immersion water heater.
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