System costs
Smart Solar is offering various roof mounted systems such as 1.44kW, 1.8kW and 2.52kW, as well as a standard ground mounted 1.2kW solar system which is easy to install.
This previous grant system was a maximum of £2000 per kW of installed solar system, up to a maximum total of £2500 per system, or 50% of the total system costs, whichever is the lower.
This has been replaced with a feed-in tariff which obligates utility companies to pay consumers with renewable energy systems a set rate for the unit of electricity generated by their system. The tariff will be paid for 25 years and is tax free.
Retrofit systems installed by customers at their homes up to 4kW will qualify for a feed-in tariff rate of 41.3p per kWh if completed from now until 31st March 2012, and 36.1p per kWh if more than 4kW. From 1st April 2012 the rates will reduce to 37.8p and 33p per kWh respectively. The feed-in tariff will be applicable to any system installed after July 2009, irrespective of any previous capital grant received. The rate for new-build systems will be 36.1p per kWh.
All rates for pv systems are for a term of 25 years and the income is tax free. The rates will also be index-linked for inflation. Any surplus electricity exported back to the grid can be sold for a minimum of 3p per kWh.
Part of the buying decision may be based on the payback of the cost of the system. The payback period will be substantially influenced by future electricity prices, which are universally expected to rise at increasing rates in the future. For example, between May 2006 and June 2008, single rate electricity prices for the first 125KwH used rose on average 64%, and for subsequent consumption on average 30% (based on rates from N-Power, Scottish Power, Powergen, Southern Electric, Northern, Swalec, Yorkshire Power, Eastern).
Access our simple
payback calculator to see how the payback period could change depending on current and projected electricity prices, based on the yield of your system. To work out the projected cost of your system, please
look at our order form, which shows the price of the core system and related options.
In Germany the market for microgeneration is many times larger than in the UK and has been buoyant for a number of years ever since the German government introduced feed-in tariffs. The feed-in tariff rate in Germany is currently €0.46 per kWh, so the recently declared rate of 41.3p compares very well.
With interest rates currently very low, there is also a compelling argument to consider installing this solar system as a long term investment for the added value it brings. The annual savings could generate a better return than current bank deposit returns, and are also not taxable, while there is increasing agreement that a solar system adds meaningful value to a property.
A most important cost saving is the reduction of carbon dioxide not emitted as a result of using renewable energy as opposed to traditional fossil fuels as part of your energy requirements.
