Photovoltaic (PV) solar installations which are already on a customer’s property and which are connected to an existing electricity supply will help reduce the electricity bills at that premises. Solar PV installations are installed in such a way that the electricity produced from the panels is used first before any electricity is taken from the grid; as a result solar installations can help reduce the bills from energy companies, as all electricity generated from the panels is effectively free.
Electricity produced by solar PV installations is naturally used before any energy from your energy supplier. As the energy from the solar installation is effectively free this means that you save money by not taking energy into your home equal to the electricity generated.
There are three ways in which a solar PV installation will make you money:
• The Feed in Tariff (FiT)
• The Export Tariff
• Savings on your energy bills
The government is committed to providing 20% of the country’s total energy consumption from renewable sources by 2020. In order to achieve this, the government have introduced an incentive scheme for small installers known as Feed-in Tariffs (FiT), which has proven successful in continental Europe.
Put simply, the FiT is a set-rate payment to system owners which will be paid to them for every kWh of energy their solar installation generates, whether or not any electricity is sent back to the national grid. The following table shows the current FiT rates.
| Size of PV system | Feed In Tariff (p/kWh) | Tariff Lifetime (years) |
| < 4kW (New Build) | 36.1 | 25 |
| < 4kW (Retrofit) | 41.3 | 25 |
| 4-10kW | 36.1 | 25 |
| 10-100kW | 31.4 | 25 |
| 100kW- 5MW | 29.3 | 25 |
| Off Grid System | 29.3 | 25 |
Once a solar PV system has been installed and registered, the FiT rates for that system are guaranteed for the next 25 years – they will remain the same regardless of any future changes to Government policy. What’s even better is that the FiT rates are index linked and will rise with inflation.
Once a solar installation has been registered, every single kWh of electricity produced by the scheme for the next 25 years will be eligible for FiTs. The FiTs will be paid quarterly, directly into your bank account by your current energy provider.
Every kWh produced that is not used on your commercial solar PV or industrial solar PV site is eligible for an Export Tariff. This payment is specifically for electricity that is generated and then exported back into the national grid. For every kWh exported back into the grid a payment of 3p is earned on top of the existing FiT rate.
For small installations there is a 'rule of thumb' assumption that 50% of the energy generated is not used by the owners of the system, and is exported back to your energy provider. You will be paid for 3p per kWh for this energy. For example, if your system generates 8kWh you will receive 4kWh x 3p = 12p for that energy - which is assumed to have been exported, whether you used it or not.
While solar panels work best when in direct sunlight, it is a myth that the sun needs to be shining in order for solar panels to generate electricity – they will generate electricity in most daylight conditions. However, the amount will vary depending on how bright or dull the day is.
Rooftop solar PV installations fall under ‘Permitted Development Rights’, so generally do not require planning permission. However, if your property is part of a listed building or in an area of ‘outstanding natural beauty’ it is best to contact your local council before going ahead with the commercial solar or industrial solar PV installation.
The FiTs are guaranteed to last for 25 years, although your solar PV installation is likely to continue to function for many years after that, still providing you with free electricity. Generally, solar installations - be they composed of monocrystalline, polycrystalline, thin film or BIPV - typically have a lifespan of around 40 years. Solar panels are made of toughened glass, so will stand up well to the elements.
Spencer Solar adopts a non-intrusive maintenance policy. We will only come to your property to carry out repairs on your solar PV panels as and when it is necessary, and at a time you deem suitable. For further details of what maintenance terms we have for each of our three finance models, please contact our sales team.
It is often a misconception that solar panels will affect the sale of a property – at least negatively. The options currently available for commercial solar and industrial solar PV installations mean they can be made more discreet.
As the new owner would stand to gain from the solar panels, it is much more likely that the property would become more attractive, rather than less, with solar panels.
No. At the early stages of providing an initial quote, Spencer Solar commissioned installers will ascertain what type of roof you have, and ensure there is nothing which would weaken or be at risk from a new solar panel array.
Your solar panels are covered through the manufacturer’s guarantee. Meanwhile if the installation is a Spencer Solar financed installation, it will be insured by us. If you have purchased your system to take full advantage of the FiT payments then it is for the owner to adjust their building's insurance to take account of the solar installation.
Before carrying out an industrial solar or commercial solar installation we will carry out an initial survey of the property generally by using satellite photographs of the property. Following this there will be a more detailed inspection of the roof of the property, the electricity system and the surrounding area. We will then provide a detailed quote, which will outline the panel type we suggest, the financial returns and the method for accessing the property.
We have offices around the country.
We can cover your solar PV requirements wherever you are in the UK.
Leeds, Hull, Peterborough, Newcastle, Glasgow, Birmingham, Reading, Cardiff, Exeter and Maidstone
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