• The level of feed in tariff paid to electricity producers is determined by by the size of the system and is set by Ofgem.  Ofgem review the amount paid for each unit of electricity generated on a quarterly basis.
• Solar PV feed in tariff (FiTs) payments are set in a contract between the producer and the Government. The rate prevailing at the time of installation is set for 20 yrs.  Payments are increased annually based on RPI inflation in the December preceding the start of the new finacial year.
• Feed in tariff payments are tax exempt for domestic installations.
• The Government deems that 50% of electricity produced by a domestic solar PV installation is used in the home and the balance “exported” to the national grid. The exported electricity attracts an additional premium of 4.77p for each unit (kWh) exported.
• All installations must be carried out by an MCS-approved installer, using MCS-approved products to qualify for the FiTs.
• The installer provides the customer with a certificate to confirm their solar PV installation qualifies for FiTs. The customer provides this certificate to their electricity provider who pays them, on behalf of Ofgem and the Government for the electricity they produce.
• All electricity sales organisations add a small levy to every unit (kWh) of electricity sold.  This levy funds the FiTs scheme.  So all electricity consumers(domestic & commercial) fund the FiTs scheme NOT Central Government.  The electricity sales companies hold this levy in a nominal account for Ofgem and apply to Ofgem to pay you from it when you claim your FiTs.
• There are a finite number of domestic and commercial electricity users in the UK this determines the budget available to pay Solar PV Fits. The Dept of Energy Climate Change refer to this as the spending envelope.

If you would like to know more about how you can benefit from the Government incentives to install Solar PV please call us on 01480 819 740, email us via our website contact form or request a call back.

On 1st April 2010, the government’s CRC (Carbon Reduction Commitment) Energy Efficiency legislation came into effect.  The legislation applies to companies with at least one electricity meter settled on the half-hourly market. Organisations that use more than 6,000 megawatt-hours of half hourly metered electricity in 2008, equivelant to an electricity bill of about £500,000, will be required to participate in the scheme.

Participants’ emissions are used to rank them in a publicly viewable League table and they are expected to reduce their emissions year on year.  The CRC legislation includes civil & criminal charges for non compliance.

By developing a CO2 reduction plan incorporating Solar PV generated electricity companies can:

• reduce their electricity costs, which will be increasingly important as energy costs escalate over time;
• create a commercial opportunity to sell excess production for a higher premium than the Government’s “Export Tariff”;
• demonstrate their commitment to their corporate environmental objectives;
• protect their corporate reputation;
• avoid CRC financial penalties;
• allow customers to identify & select low carbon suppliers of goods & services.

This allows participant companies to gain competitive advantage.

Examples of Business use of renewables:

• Analysts at a major high street retailer, that spent £70m on electricity in 2009, predicted that their electricity costs will increase to £120m over the period 2010 – 2020.  Their solution to manage this cost increase was to install Solar PV where ever possible on their stores’ roofs.  This is part of their “Plan A”.  Source: Ray Noble, Renewable Energy Association.
• An EU wide meat packer with a turnover of >£500m has a site in Huntingdon which consumes £1m of electricity a year.  They have 3000m2 of roof area over three factories which could be used to install Solar PV.  To do this will cost approx £1.4m and will produce an income of approx £140k a year resulting in payback of investment in approximately 8 years & an annual ROI of 10%.

Planning Permission for Solar Panels

Solar Panels, guidance for England.

Planning Permission

In many cases installing solar panels on domestic land is likely to be considered ‘permitted development’ with no need to apply to the council for planning permission. There are, however, important limits and conditions which must be met to benefit from the permitted development rights (see below). You may wish to discuss with the local planning authority for your area whether all of the limits and conditions will be met.

Solar panels mounted on a house or on a building within the grounds of a house.

All the following conditions must be observed:

• Panels on a building should be sited, so far as is practicable, to minimise the effect on the external appearance of the building and the amenity of the area.

 All the following limits must be met:

• Panels should not be installed above the highest part of the roof (excluding the chimney) and should project no more than 200mm from the roof slope or wall surface.
• The panels must not be installed on a building that is within the grounds of a listed building.
• The panels must not be installed on a site designated as a scheduled monument.
• Wall mounted only – if your property is in a conservation area, or in a World Heritage Site, panels must not be fitted to a wall which fronts a highway.

 Stand alone solar panel installations (panels not on a building)

All the following conditions must be observed:

• Panels on a building should be sited, so far as is practicable, to minimise the effect on the amenity of the area.

 All the following limits must be met:

• Only the first stand alone solar installation will be permitted development. Further installations will require planning permission.
• No part of the installation should be higher than four metres
• The installation should be at least 5m from the boundary of the property
• The size of the array should be no more that 9 square metres or 3m wide by 3m deep
• Panels should not be installed within boundary of a listed building or a scheduled monument.
• if your property is in a conservation area, or in a World Heritage Site, no part of the solar installation should be nearer to any highway bounding the house than the part of the house that is nearest to that highway.

Note – permitted development rights for solar panels are available for both single houses and buildings which consist wholly of flats.

Note – If you are a leaseholder you may need to get permission from your landlord, freeholder or management company.

NOTE: It is the responsibility of the owner of the building or land where Solar PV panels are to be installed to ensure that they have permission for their solar panels installation by enquiring with the relevant authorities. Local authority websites have “Planning Permission Enquiry” forms for householders to check whether a solar panels installation is a permitted development or requires planning permission.

It is not the installer’s responsibility to check whether an installation is allowed under planning (permitted development) regulations or requires planning permission.

Building Regulations

If you wish to install a solar panel on your roof building regulations will normally apply. The ability of the existing roof to carry the load (weight) of the panel will need to be checked and proven. Some strengthening work may be needed. Building regulations also apply to other aspects of the work such as electrical installation. It is advisable to contact an installer who can provide the necessary advice, preferably one who belongs to the Competent Person Scheme.

For further information follow this link:

http://www.planningportal.gov.uk/permission/commonprojects/solarpanels/

VAT

The Government have set a reduced rate of 5% VAT for the supply & installation of renewable technology on most buildings, a reduction of 15% from the prevailing VAT rate. This applies if the installation company procures and installs a Solar PV panels system, however if energy-saving materials are supplied without solar panels installation the supply is standard-rated for VAT.

Tax

You pay NO tax on revenue you receive from Solar PV Feed in Tariffs from domestic installations.

The term “photovoltaic” comes from the Greek meaning “light” and “voltaic”, meaning electric, from the name of the Italian physicist Volta after whom the Volt is named.

How solar PV panels work

A solar photovoltaic (PV) cell converts the energy from sunlight into electricity by the “photovoltaic effect”.  This refers to photons of (sunlight) solar energy knocking electrons off a layer of silicon semi-conductor in a solar cell in solar panels.  The flow of these electrons to a second silicon layer within the cell builds up a voltage between the two layers creating an electric current.  This flow of electrons produces direct current (DC), which is converted to alternating current (AC) by an inverter so it can be used by appliances in the home or exported to your electricity supplier.  Solar PV Panels can help reduce your electricity bills by 25% and you could earn up to £1000 a year from Government incentives called Feed in Tariffs(FiTs)!

Solar PV Panels and Renewable electricity production

Solar photovoltaic electricity production is the fastest growing power-generation technology in the world. Between 2004 and 2009, grid-connected PV capacity increased at an annual average rate of 60 percent with Germany seeing the fastest rate of growth.  In 2010 the UK became the fastest growing market globally for Solar PV Panels, incentivised by Feed in Tariffs.

It is estimated that 30% of the UK’s electricity could be generated from renewable sources with 2% from small-scale electricity generation such as Solar PV Panels.  Currently less than 5% of the UK’s electricity comes from renewable sources.  This represents a significant growth opportunity for electricity generation from renewable sources which the Government have recognised in their Feed in Tariffs which incentivise the installation of Solar PV electricity generation.  Feed In Tariffs are tax free for domestic panels installation and guaranteed to increase annually by RPI inflation for 25 years. Solar PV Panels installed at your business premises can produce 8%-12% annual return on your investment with FiTs increasing annually index linked to RPI.

Help the environment and future generations by installing solar PV panels on your home or business.  Electricity generated from solar PV power does not produce harmful greenhouse gases.  With no noise and no CO₂ emissions you can increase your green credentials and reduce your carbon footprint.  Once fitted, you can forget about the panels.  They require little or no maintenance and provide a simple cost effective source of renewable energy.

If you wish to be part of the Renewables Revolution and would like more information about installing panels please contact our experienced team at Solar Panel Cambridgeshire.