Why Choose To Install PV Solar Panels?
There are two important reasons why you should choose to install solar home PV panels.
The first is financial. The Government is encouraging homeowners (or 'microgenerators') by paying 21p for every Kwh produced by home solar panels. That, along with the savings you make from not having to pay for electricity from the grid, all add up to a tidy, tax free sum every year.
The second reason is ethical. You can play a part in the global challenge to replace the earth's dwindling resources by using renewable or 'green' energy. You are investing in energy for now and for future generations.
The Feed In Tariff Whats It All About?
The Government launched the Feed-in Tariff on 1 April 2010, this is a premium payment for every unit of electricity that is generated by small solar pv systems. This replaced the LCBP government grant schemes. The Feed-in Tariff is tax free to domestic households and index linked to inflation for both commercial and domestic installations.
Who is eligible?
All PV installations under 5MW, private and commercial are eligible. On the commercial side, the feed-in tariff will encourage photovoltaic (PV) installations among farmers, rural businesses, small and medium enterprises.
How long will it last?
The Government has committed to pay the tariff for 25 years for photovoltaic installations.
Will the tariff change?
Once your tariff is agreed with the Government it will not decrease. It will increase each year in line with inflation (retail price index). The next feed-in tariff review in scheduled for 31/03/12. From 1/4//12, the Feed-in tariff will then drop each year for future installations. This is to encourage early uptake.
Why is the Government doing this?
The Government is way behind other European countries on commitments to reduce carbon emissions and to secure against future oil supplies. This is one way it can catch up. The UK currently produces 5.5% of electricity from renewables, this is expected to rise to 30% to meet the 15% 2020 target for all energy.
How will it be implemented?
Ofgem will administer the feed-in tariff. Suppliers will be responsible for paying the reward to their customers.
Is VAT payable?
VAT at 5% is payable on domestic installations. New Builds are often VAT exempt, commercial buildings will pay standard VAT rates at 20%.
For more information www.gemserv.com or www.ofgem.gov.uk.