Once you have selected and installed your system, collecting your
could not be easier. Here we run through how you will be paid by installing a basic system.
Let us assume you install 10 x 250W panels on your roof that costs £10,000. This would give a Wp system size of 2500Wp – or 2.5kWp (Kilo Watt Peak). Using SAP 2005 we then estimate that your system will produce at least 2,100kWh of electricity every year.
Therefore, assuming you are on the standard
domestic FiT tariff
, you will receive a payment of 44.3p for every kWh that you produce:
44.3p x 2,100kWh = £930.30
Let us also assume that you only use 50% of the electricity you produce (this is what the Government allows you to assume until Smart Meters are installed in every home by 2014). Thus, by exporting the other 50% of the electricity you generate, you also get paid:
3.1p x 2,100kWh x 50% = £32.55
Finally, if you are exporting 50% of the electricity you generate, you will therefore be using the other 50%. This electricity is free and replaces electricity you would otherwise have bought from your supplier. Assuming current electricity prices from your supplier are around 13p per kWh, you would therefore be saving the following from your annual electricity bill:
13p x 2,100kWh x 50% = £136.50
Hence, in total you would make annual savings of:
£930.30 + £32.55 + £136.50 = £1,099.35
However, £136.50 of this is a saving on your electricity bill. The other £962.85 is a payment that is made from you ELECTRICITY SUPPLIER to you. Every time you get an electricity bill, it will show this credit (for quarterly bills the credit will be a quarter of this on each bill). Note that you still have your electricity bill for the rest of the electricity you require from the grid to run your property. Although most people find that they have no bills to pay after installing solar PV systems.