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If you’ve been wondering how much income a solar panel installation would generate on the 21p tariff rate, the Energy Saving Trust website has already done the calculations for you.
Based on a typical 3kw photovoltaic (PV) solar panel installation, you could earn:
£530 a year from the Generation Tariff of 21p
£40 a year from the Export Tariff of 3p (paid directly by your energy provider)
£100 a year reduction of your current energy bills.
That adds up to £670 a year. On a typical 3kw installation, that’s a very attractive payback period of just 12 to 13 years, leaving you with the remainder of the 25 year period to reap the rewards.
That payback period also assumes no further energy price rises in the next 12 years!
If December’s (2011) tariff reduction is reversed, then you can see why the 43p rate is so attractive to those who’ve already installed solar on their roofs.
And you could save even more by applying a few energy saving measures around your home.
Some installation companies will offer free (or packaged) energy surveys of your home, and these can help highlight areas where you could save energy. Especially if you’re aiming for complete self-sufficiency from the grid, then you’ll need to get your energy consumption as low as possible, before the installation takes place as you’ll only want to pay for the generating capacity you need.
And the news ‘on the wire’ is that this October’s forthcoming Renewable Heat incentives may require a certain energy efficiency rating of your home, before they’ll be paid.
The Government is said to also be considering similar move with the Feed-in Tariffs, so to get the tariff payments, households may have to spend extra on insulation and other energy efficiency measures to get their property’s energy rating lower.
This story first appeared in our weekly homeowner newsletter dated 6th February 2012. Click here to read the full newsletter, which also included a round up of the weeks top home improvement offers.