If you live in the United Kingdom, and you are interested in installing PV solar panels on your house, you should know about the generation tariff.
This tariff, which is part of the feed in tariff (FIT) might help you make the decision to go ahead and purchase these panels.
These panels are a completely clean way of producing electricity because they use the energy from the sun to generate electricity.
Buying and installing PV solar panels is expensive, and many people worry that they might not be able to afford it.
Two things help many people make this purchase possible-financing and the generation tariff.
First, like any institution that sells expensive items, most solar panel providers offer financing on their products and services.
This means that you will anywhere from a year to a couple of years to pay off the purchase.
If not, you can take out a small loan for home improvements or you can charge it to a low interest credit card and pay it off that way.
Once you have your PV solar panels installed, you will actually start generating tax free income.
The generation tariff means that you get a small amount of money for each kilowatt hour that you produce, even if you use all of it.
Other sources of renewable energy, such as wind turbines and tidal power systems, are also eligible to receive this tariff money.
The export tariff is the other part of the FIT, and you can receive a very small amount (around 3 p) for each kilowatt hour exported to the power grid.
How Much Money You Can Earn The generation tariff is currently set until 31st March 2012 when it is subject to change.
The amount that you receive for your PV solar panels will vary depending on the amount of power that your system produces.
The smallest systems receive the highest amounts per kilowatt hour, but it tends to even out because the larger systems produce more electricity.
For example, the smallest system which generates four kilowatts or less, such as a system used to heat your swimming pool will receive 43.
3 p per kilowatt hour or 37.
8 p per kilowatt hour.
The slightly higher amount is for systems that were installed on existing (rather than new) buildings.
The largest PV solar panel systems (from 250 kilowatts up to five megawatts) only receive 8.
5 p per kilowatt hour.
Once a system is capable of producing more than five megawatts, it is no longer eligible to receive the generation tariff.
Nonetheless, an average household that installs PV solar panels can expect to save £800 to £900 a year with the generation tariff and the reduction of the electricity bill.
These tariffs are currently slated to be distributed for the next twenty-five years, so you will likely be generating income long after you have paid for your system.
So whether you want to save money on energy costs or whether you want to improve your environment, you should consider investing in PV solar panels.
This tariff, which is part of the feed in tariff (FIT) might help you make the decision to go ahead and purchase these panels.
These panels are a completely clean way of producing electricity because they use the energy from the sun to generate electricity.
Buying and installing PV solar panels is expensive, and many people worry that they might not be able to afford it.
Two things help many people make this purchase possible-financing and the generation tariff.
First, like any institution that sells expensive items, most solar panel providers offer financing on their products and services.
This means that you will anywhere from a year to a couple of years to pay off the purchase.
If not, you can take out a small loan for home improvements or you can charge it to a low interest credit card and pay it off that way.
Once you have your PV solar panels installed, you will actually start generating tax free income.
The generation tariff means that you get a small amount of money for each kilowatt hour that you produce, even if you use all of it.
Other sources of renewable energy, such as wind turbines and tidal power systems, are also eligible to receive this tariff money.
The export tariff is the other part of the FIT, and you can receive a very small amount (around 3 p) for each kilowatt hour exported to the power grid.
How Much Money You Can Earn The generation tariff is currently set until 31st March 2012 when it is subject to change.
The amount that you receive for your PV solar panels will vary depending on the amount of power that your system produces.
The smallest systems receive the highest amounts per kilowatt hour, but it tends to even out because the larger systems produce more electricity.
For example, the smallest system which generates four kilowatts or less, such as a system used to heat your swimming pool will receive 43.
3 p per kilowatt hour or 37.
8 p per kilowatt hour.
The slightly higher amount is for systems that were installed on existing (rather than new) buildings.
The largest PV solar panel systems (from 250 kilowatts up to five megawatts) only receive 8.
5 p per kilowatt hour.
Once a system is capable of producing more than five megawatts, it is no longer eligible to receive the generation tariff.
Nonetheless, an average household that installs PV solar panels can expect to save £800 to £900 a year with the generation tariff and the reduction of the electricity bill.
These tariffs are currently slated to be distributed for the next twenty-five years, so you will likely be generating income long after you have paid for your system.
So whether you want to save money on energy costs or whether you want to improve your environment, you should consider investing in PV solar panels.
Source...