UK solar power distribution rates
The solar power distribution rates are implemented through Feed-In Tariffs (FITs). This is a scheme by the UK government which is designed to encourage small-scale home owners to implement renewable and low-carbon technologies for electricity generation. By participating in FIT, homeowners across the UK receive payment for generating electricity using solar panels (PVs), hydroelectric systems and wind turbines too.
Under the solar power distribution plan, homeowners can receive an income based on the generation tariff, export tariff or energy bill savings. Those with Solar PV panel systems installed in their homes that have a capacity of less than 10kW earn at a rate of 3.93 p/kWh. Those who have systems in their homes that have a capacity of between 10 and 50 kW earn 4.17 p/kWh.
Opportunities brought by the solar uptake in the UK.
“For suitable properties there is currently a missed opportunity for home owners to not only help the environment but also help their wallets in the long term. The lack of uptake is often simply due to the lack of knowledge around the benefits of domestic solar power” Alastair Kay from Green Business Watch
Discounts on equipment
Corporations in the energy sector provide homeowners with incentives to install these systems on their homes. Some of these incentives provide opportunities to get high quality solar power equipment at discounted prices. EDF Energy is allowing homeowners to sign up to their grid service. Home owners who sign up for this program have the opportunity to get high quality Powervault batteries at a 2,000 pound discount per unit. The company is providing this opportunity in an effort to standardize its solar power grid.
Long-term income through the FIT system
Homeowners who produce ample solar power can enjoy payments through the FIT arrangement. These payments are disbursed over a long-term period of time. According to regulation, they are provided over a length of up to 20 years. In addition to that, the rates that you can enjoy will be adjusted according to the Retail Price Index (RPI). Moreover, those who got into the program early will receive their FIT payments accordingly. In this way, enthusiasm for the initiative is rewarded. If an energy cap is attained, the FIT administration will inform the homeowners. In this way, no renewable energy effort goes to waste.
Solar energy is one of the easiest and most convenient renewable energy sources today. It can be generated directly from the sun rays using relatively simple installations. Not only has the UK government encouraged the uptake of this type of electricity generation, it has also provided financial initiatives for the homeowners who actively implement this technology. As such, there are financial benefits and opportunities to installing solar PV panels in your home. As a matter of fact, a solar installation in your home can be thought of as a long term, tax free investment.