subject: Domestic Solar Panels Become an Even Better Investment [print this page] Domestic Solar Panels Become an Even Better Investment
As well as generating free electricity, domestic photovoltaic (PV) solar panel systems represent a solid financial investment. Thanks to a recent increase in the Feed in Tariff due to inflation, photovoltaic systems now provide even greater financial returns than ever before.The Feed in Tariff and InflationFeed in Tariffs are a means of earning money from the government for electricity generated by renewable or low-carbon means. The Feed in Tariff varies according to the technology used for generation and photovoltaic solar panel systems up to 10kWp benefit from higher tariffs than other technologies - with 4kWp or less systems earning the highest tariff of all. All photovoltaic systems provide guaranteed returns for 25 years - the longest period of all technologies. As well as depending upon the size of the system and technology used to create electricity - the Feed in Tariff is also time sensitive. As such, the recent news that from 1st April 2011 the tariff for retrofit photovoltaic systems which produce less than 4kWp is set to increase from 41.3p to 43.3p per unit means that to get the absolute maximum return from a solar pv system you should invest between now and the end of March 2012.As the Feed in Tariff is index-linked, the amount paid to owners of certain renewable energy generation systems closely follows inflation. This link to inflation means that a steady, real return is assured - allied with Feed in Tariff entry at the highest possible rate (any time between 15th July 2009 and April 2012), those with existing systems or intentions to invest now will reap the most significant return on investment.What Constitutes an Eligible Unit For The Feed in Tariff?Photovoltaic solar panel systems fitted on or after July 15th 2009 with generation capacity under 5mWp are eligible to apply provided they have been installed by a company who are accredited by the Microgeneration Certification Scheme (MCS). As the majority of domestic photovoltaic installations produce around 4kWp - they fall well within the boundaries set by FITs. What All of this MeansEssentially, those who already have a domestic photovoltaic solar panel system which produces less than 4kWp or are planning to invest in a new system fitted by an MCS accredited installer before 1st April 2012 will receive 43.3p per unit of electricity they produce from 1st April 2011. Owners of both new and existing systems will continue to receive payments for a period of 25 years with the tariff tracked with inflation for the duration. Quite simply this means that not only will a domestic solar panel installation generate free, carbon neutral electricity: but those with eligible units will also receive government guaranteed revenue for every unit they produce - whether they use it or sell it back to the grid! The recent rise in the Feed in Tariff also means that right now is the best possible time to invest in a photovoltaic solar panel system.How to Reap the BenefitsIf you would like to benefit from free electricity and an assured revenue stream for the next quarter of a century then it's well worth considering investing in a photovoltaic system. By arranging for installation to be completed before April 1st 2012 you are 'locking in' at the highest possible Feed in Tariff and assuring maximum ROI. Provided you utilise the services of an approved installer, free power and an impressive financial return could be round the corner. Make the most of offers such as a free solar panel quote to find out whether your home is suitable for a photovoltaic system and receive an estimate of your likely returns.
