CHUMP: Solar panels! Bit out of my league
aren't they?
CHAMP: Au contraire, mon ami, Solar Panels PV
(SP) merely convert sunlight into electricity -
CHUMP: You don't say Sherlock! But why should I
be interested?
CHAMP: As I was just about to say, as well as
giving you a smaller carbon footprint, they can give you a regular
income.
CHUMP: As in cash income?
CHAMP: Yep.
CHUMP: Well don't stop there man, tell me
more!
CHAMP: Firstly in export payments. These occur
when any electricity generated by your SPs, which isn't being
consumed by you, automatically goes to the National Grid for a
minimum payment of 3p per kWh. It's tax free too and is locked in
for 25yrs.
CHUMP: Tax free income from devices that will
cut my fuel bill! Why haven't I heard about this before?
CHAMP: Probably because when anything 'green'
came along you thought you were going to get a load of weird beard,
tofu munching, sandal wearing propaganda and switched off.
CHUMP: I suppose I might have
done.
CHAMP: Shame that, as it gets even better
thanks to a thing called Feed in Tariff (FiT) payments. Now hold
onto your hats because politicians have made a simple system
rather complicated.
CHUMP: Just do your best.
CHAMP: OK. Introduced in April 2010, the FiT
paid 43.3p to you for every kWh generated by your solar panels no
matter whether you consumed them at home or exported them to the
National Grid. Governments changed and the new one announced a
brand new system called the Green Deal. This initiative would
change all 'green' subsidies etc. when introduced in late 2012.
Until then, the FiT was to be cut so that from 1st April
only 21p per kWh would be paid and then only to houses rated band C
by Energy Performance Certificates.
CHUMP: I bet that put the cat amongst the
pigeons!
CHAMP: I'll say. The new rate would means the
amount of money the prospective domestic SP owner could make would
be slashed so much, there was such a stampede to get them fitted
before the cut-off date 80,000 SP systems were fitted in just six
weeks!
CHUMP: And?
CHAMP: Then it went to court where the judge
decided the government's cut of the FiT was "legally flawed" in
December 2011 and booted it out. At appeal on 25th
January 2012 the court's earlier ruling was upheld, meaning the FiT
of 43.3p per kWh, however energy efficient your house, would remain
due to SP owners until the law decides otherwise!
CHUMP: OK, cut to the chase - how much money
does a typical SP system cost, and in typical weather for a year
with typical this, that and the other, how much will it make
me?
CHAMP: It depends but if you really want a
figure-
CHUMP: Yes I do and I know it may vary so
spit it out!
CHAMP: OK, an average size system costs between
£12,000 and £15,000. You'll earn you up to £1200 a year through FIT
payments (43.3p per kWh) and energy savings. And that's tax free,
with the FiT linked to the Retail Price Index and paid to you by
your electricity company for 25 years.
CHUMP: How much will these solar panels cost
me?
CHAMP: Again prices will vary but for a typical
system, fully installed, expect to pay around £15,000, give or take
a grand or so.
CHUMP: There must be a catch. What about
planning permission?
CHAMP: Phone your planning officer to check
but, unless it's a listed building or in a conservation area, there
shouldn't be a problem. Nor does it matter what electricity company
you use, or change to, as everything is regulated so all have to
play ball. So then, are you converted to solar power?
CHUMP: Not sure. Let me eat this deliciously
appetizing tofu and beansprout wholemeal bap that's miraculously
appeared out of nowhere and I'll tell you.