Return on Investment
Many people and organisations will look into including renewable energy in their homes or buildings solely to cut their carbon footprint and help improve the world we live in. However,finances are a huge driver when people and organisations make decisions so sometimes these decisions are based on the finances related to deploying renewable energy systems.
Now that the Government’s Feed-in Tariffs are well established and have survived the Comprehensive Spending Review, the return on investments for Solar PV and Wind Turbines can be estimated to a reasonable degree of accuracy, although the certainty of these returns will be different for different technologies. The typical combined savings and earnings will be around 8-10% for Solar PV and around 8-15% for Wind Turbines. The return on heat generating technologies are more difficult to estimate at this time but when the Renewable Heat Incentives are operating there will be much clearer information on this.
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Feed-in Tariffs
What are the Feed-in Tariffs?
The Feed-in Tariff Scheme is a new Government initiative which was introduced in the UK in April 2010 to encourage people to generate electricity from renewable sources, by offering financial support. Not only will you be paid through your electricity supplier for the electricity you generate, but you will also reduce your energy bills AND protect yourself from future energy price rises. Whatʼs more, you will be paid again for any electricity which you do not use which you export to the national grid, through your electricity supplier. All that, as well as reducing your carbon footprint.
How do I generate electricity from a renewable source?
By having us here at APL electrical install a Solar PV renewable energy source.
Who can benefit from the Feed-in Tariffs?
The Scheme started in April 2010 and is open to everyone in England, Scotland and Wales who installs an eligible renewable electricity system; this includes homeowners, tenants, businesses, schools and farms. For small and medium sized installations, both installers and equipment must be certified under the Governmentʼs Microgeneration Certification Scheme (MCS). APL Electrical are MCS accredited installers.
How much money would I receive from the Feed-in Tariff?
The Feed-in Tariff Scheme actually consists of two payments. You will be paid a fixed amount up to 44.3p/kWh for up to 25 years for the electricity you generate and use yourself. This is called the Generation Tariff. The amount of income you earn is dependent on the size and location of the installation. APL Electrical can advise on the best size system for your property, how much
you would be paid. Please see the table below for a summary of the tariff rates. The second part of the Feed-inTariff is Export Tariff. Any electricity you generate which you do not use yourself can be exported to the national grid and you will be paid a fixed amount per unit by your electricity supplier.
In addition, as you will be generating your own electricity, you will not need to buy as much electricity from your normal supplier, so will save money on your bills. Electricity prices are likely to rise every year, so you will be protected from these future rises as you will be buying less electricity.
The Government has set up the tariff levels to provide a rate of return of approximately 7 to 12% on the additional capital cost of renewable technologies. This is even greater for higher band tax payers, as the Government has made the income from Feed-in Tariffs tax exempt.
Other benefits
By installing an APL Electrical Renewable Energy Solar PV system you can help the Government meet its target of generating 15% of our energy in the UK from renewable sources by 2020. So as well as saving money and earning money from installing a renewable electricity system, you will also be reducing your impact on the environment.
Why choose APL Electrical> Solar?
APL Electrical is a designer, supplier and installer of Solar PV renewable energy solutions for domestic, commercial buildings. Established in 2008, we offer solar PV (photovoltaic), we can offer advice regarding Government Feed-in Tariffs. APL Electrical is a company accredited by the Microgeneration Certification Scheme (MCS) with the NICEIC and is a member of the REAL Assurance Scheme.
Act Now
When you join the Feed-in Tariff Scheme you will be paid the rate applicable at the time you join for 25 years, depending on the technology you install. The rates are fixed until April 2012, but anyone joining the scheme after that date will be paid a lower rate. The rates will be dropping by approximately 8% every year for new entrants, so to get the best Feed-in Tariff rate you need to
act sooner rather than later.
Interested?
If you want to find out how you can benefit from the Governmentʼs Feed-in Tariffs, please speak to us and we will advise you on the best system for you and offer you a free survey or quote.
Call us on 01252 859637 or e-mail us solarenquiries@aplelectricalservices.co.uk.