Funding for Solar PV (photovoltaic)

Mainstream grant funding ended on 3rd February 2010 for electricity generating products, including solar PV. The grants are being replaced by Feed In Tariffs (FITs).  These  commenced on 1st April 2010 - also known as the Clean Energy Cash-Back Scheme.   Anyone generating up to 5 Megawatts of electricity will receive payments for every Kilowatt produced.  If you installed a new solar PV system before April 2010 you will still qualify to receive payments.

• Can earn around £835 per year.
• Electricity can be sold to the grid.
• Off-grid systems can charge batteries.
• Cuts CO2 by approximately 1.2 tonnes.

Most PV systems are grid-tied and the electricity can be used at source or fed back into the grid. Standalone grid-tied systems only feed the electricity back into the grid and do not use any at source. Off-grid systems that charge batteries can also be installed in remote locations.

Feed in Tariffs (FITs) for Solar PV

The new Feed In Tariffs are available to anyone wishing to generate their own electricity, including home owners, public sector bodies, charities and businesses. Anyone producing up to 5 megawatts of electricity will qualify, with most installations being well under this limit. Payments for Solar PV systems will continue for 25 years. The return on investment is expected to be in the region of 8% which should pay for the initial capital cost of the system over it's lifetime.

Solar PV Feed In Tariff Summary

• Available for ALL small-scale electricity generators.
• Eligible if producing up to 5 megawatts.
• Payments for 25 years after the system is installed.
• Expected 8% return on your investment.
• Earn from Generating, Exporting and Saving
• A 2kWp system can earn around £835 per year.

Solar PV Costs

Domestic systems cost between £5,000 and £7,500 per kWp installed. The difference in cost is mainly due to the type of panels used and whether they are integrated with the roof tiles. Most domestic systems are between 1.5kWp and 3kWp, so an average 2kWp system will cost in the region of £10,000 to £15,000. Domestic systems rated above 2kWp can cost around £20,000.

Solar PV Earnings

There are three ways to earn money from the Feed In Tariffs. The Generation Tariff pays you for each unit or kWh of electricity produced. The table below shows these rates which are available for 25 years after the system is installed. An additional 3p per kWh is paid for each unit exported back to the electricity grid. There are also substantial savings to be made on your energy bills

A typical 2kWp system can earn the following:

• Generation Tariff (table below) = £700 per. year.
• Export Tariff (extra 3p per. unit) = £25 per. year.
• Electricity Bill Savings = £110 per. year.

Total Earnings per. year = £835.

The example above assumes that 50% of the electricity generated is exported to the grid. There are also other variables such as where you live and the angle & direction that the panels face. As a 2kWp system costs between  £10,000 and £15,000, a return of £830 per year means that the initial capital cost should be recovered in around 15 to 18 years.  The table below shows the generation tariff which represents most of the earnings.

* Prices shown are in pence per kilowatt hour (p/kWh).
** Standalone systems only feed electricity back into the grid.

Solar Thermal (Hot Water) Grant Summary

• Systems provide one third of hot water.
• Can also heat swimming pools.
• Save on fuel bills & cut Carbon emissions.
• Must have installed basic Energy measures.
• Domestic grant of £400 towards cost.
• Public sector and charity grant of up to 50%.

Funding for Wind Power

Wind Turbines convert the power of the wind into electricity which can be stored in batteries, used directly or fed into the grid. As with solar PV, mainstream grant funding has been replaced by the Government's new Feed In Tariffs or FITs. Anyone generating electricity can receive these payments, even if the electricity is not fed back into the grid. In Scotland, a 30% grant is available to install a small-scale domestic wind turbine.