The Light Fantastic

Published on 26th July, 2010

sun shining on Solar Photovoltaic panelPhotovoltaic panels

Solar power, as has been mentioned before, is only just coming into its own here in the UK. But despite some reservations, there are some valid reasons for installing solar heating or photovoltaic, or even both. Reducing emissions, independence from the national grid, saving money. But now, a rather more selfish one can be added: avarice. The reason for this is twofold. Firstly, the FIT (Feed-In Tariff), introduced by the Government, pays people to generate their own electricity at a 6-8% return over 25 years (see our News section). Secondly, interest rates are very low, so it’s a perfect time to invest. How do I go about it then? You will need…

  • A roof with a SE-SW alignment that is free of shade and has an angle of 30-40 degrees.
  • A solar PV panel. A 2kWp panel will cost £10-12,000 to install.

Generally, a 2kWp panel will generate an average of 1700kWh. Roughly a quarter of this is used in the home (depending on how good you are at turning lights out) and the rest is exported to the national grid, while the government will pay you 41.3p for every kWh of electricity you generate

So…

for a 2 kilowatt peak solar PV installation:

  • Cost of installation: £12,000
  • Annual output: 1,700 kWh
  • Feed-in tariff generation rate @ 41.3p/kWh: £702.10
  • Used in the home: 850 kWh
  • Savings from electricity bill @ 12p/kWh: £102
  • Exported: 850 kWh

  • Income from export @ 3p/kWh: £25.50

  • Total return: £829.60

  • Return on investment: 7%

Additionally, the finance package that EcoLogicLiving offer means that solar PV can start paying for itself immediately. Click on the link to find out more.

As a side note for those that already have solar PV panels, you may notice that their efficiency drops off when it’s warmer, even though there is more sun on it. Don’t be alarmed, this is normal. While solar heating panels do use the suns warmth, PV wants to be cooler rather than warmer, in the same way that your computer loses efficiency when it heats up. Its not a huge loss (a 30 degree C day will drop output by about 10%) so relax and enjoy the weather, safe in the knowledge that when the temperature drops, the efficiency rises.