Solar PV - Everyone’s Talking About It

With more and more people investing in solar panels for their home, solar PV is the hot topic of the moment.

Right now, you would be hard pressed to walk down a street in your local town and not see solar panels on roofs. However despite this, there still seems to be a lot of confusion about solar PV, how it works, and how homeowners can earn money by having solar panels installed on their roof. Read on as we attempt to debunk some of the myths surrounding solar PV and show how it can work for you.

In April 2010, the Government introduced the Feed-In Tariff to encourage homeowners to install renewable technologies in their home and generate their own, environmentally-friendly energy. A number of renewables were covered by the tariff, including solar PV, where electricity is generated from daylight.

Solar PV received the highest tariff rates and the longest duration payment period, with homeowners being paid for 25 years once the system is installed. And with equipment costs coming down all the time, solar PV has never been such an attractive investment.

The average size system installed is around 2.5kWp, with the ideal conditions being a south-facing roof at a 30° tilt. However, solar panels still work at 90% of their peak efficiency if installed on a flat roof, and it does not make an enormous difference if your roof is not facing due south. The most important factor is that the roof is free from overshading.

The start up costs of solar PV can seem daunting, however here is an example of the kind of sums involved in installing a solar PV system on your home. A 2.5kWp system would cost around £10,500 to install on a typical home. From this, you could expect to earn up to £925 from the Feed-In Tariff per year, with savings on your energy bills of around £150. You would receive these payments for 25 years from the commissioning date, offering a payback period on the system of 9.5 years and an annual return of investment of approximately 11%. Comparing this with the typical interest rate on a savings account (around 3%), investing in solar PV is not only good for the environment, but good for your wallet too!

The installation itself is very easy, and usually only lasts a day. Scaffolding will need to be erected in order to access the roof safely, however there is very little disruption and you will start generating electricity straight away. As there are no moving parts, the system will not need much maintenance, with an annual clean of the panels being sufficient. So once the system is installed, its just a question of sitting back, watching your generation meter tick over and collecting the earnings.

A common question raised is ‘What happens if I want to move house during the 25 year payment period?’ This is not a problem, as the Feed-In Tariff earnings can be transferred onto the new owner of the property. Installing solar panels can actually increase the value of the property, as the new owner then has a guaranteed source of income for the rest of the payment period.

There is also the option of having ‘free’ solar panels installed on your roof. This is when a company will pay for the solar installation, so there are no upfront costs, however they will also keep all of the income from the Feed-In Tariff. The homeowner benefits from the free electricity generated by the solar panels, but as you can see from the example above, the possible Feed-In Tariff returns are a lot to miss out on. If you do not have the initial start up money, it is worth first investigating what loans are available before plumping for the 'free' option, as you may be missing out in the long term.

With so many companies and so many products out there, it can be difficult to know what is best and who to choose. There are however a couple of good indicators to ensure that an installer is properly qualified. Firstly all installers must be a member of the Microgeneration Certification Scheme. This is a regulatory scheme set up for the renewables industry; all members undergo annual audits to ensure that they meet strict standards and processes. In order to benefit from the Feed-In Tariff your installer and the solar panels must be MCS registered. More information can be found on the MCS website, however your installer should also be able to advise you on this.

The second requirement is that installers must be members of a Consumer Code. This is to protect consumers from rogue traders, as highlighted in a recent Which? survey, and ensure consistently high customer service. If your chosen installer meets both these requirements then you should be on the right tracks.

So solar PV really is a simple, hassle-free affair, that stands to benefit both the homeowner and the environment. To benefit from the best Feed-In Tariff rates, sign up before April 2012, as the scheme is scheduled for its first review and tariff rates are likely to be reduced.

James Gold is Director at Landmark Solar, specialist solar PV installers for the London and Home Counties area, offering professional advice and no-obligation site surveys of your home.

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