Solar Photovoltaic Payback Benefits
Photovoltaic panels can save you money
The Feed-In Tariff was recently introduced and improved by the Government to encourage the adoption of renewable energy solutions across the whole of the UK. This new scheme has not only significantly reduced payback periods for Photovoltaic systems but it has also created real investment opportunities in Solar.
PV installations will operate for many years with little maintenance and low operating costs. So after the initial purchase of a solar system, the savings achieved through the Feed-In Tariff will speed up the repayment of your original investment, allowing you to profit from all future savings from that point on.
There are three ways that the Government’s Feed-In Tariff can help you to make money from generating your own energy.
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The Generation Tariff
You can earn a fixed income for every kilowatt hour of electricity you generate.
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The Export Tariff
You can earn an additional fixed income for every unused kilowatt hour of electricity you generate by selling it back to the grid.
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Avoid Cost of Imported Electricity
You could also avoid the cost of the imported electricity that you would have had to purchase if you had not generated your own power.
| Calculation | Value | |
|---|---|---|
| Generation Tariff | 1,700 kWh x 41.3p | £702.10 |
| Export Tariff | 850 kWh x 3p | £25.50 |
| Value of Saved Imported Electricity | 850 kWh x 12p | £102.00 |
| Co2 Savings | 1,700 kWh x 0.43Kg | 731 Kg |
| Total Yearly Benefit | £829.60 |
The above example assumes 50% of the energy generated is used by the consumer, paying 12p per unit (kWh) from its service provider.
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