Shropshire Star, Wednesday 23rd June 2010

Energy company is enjoying busy spell

A Shrewsbury-based solar power energy company has been enjoying a busy spell thanks to the recently introduced government clean energy cash-back scheme, or feed in tariffs as they are also known, whereby homeowners install solar photovoltaic systems (PV).

Salop Energy,based at Maverick Business Park, has been in undated with clients interested in taking up the new incentive launched by the Government on April 1this year. Director of Salop Energy,Gordon Ryan, says:

“The recently launched feed in tariff scheme is a tremendous boost for the industry as a whole, but more importantly, for the consumer it offers a tremendous opportunity as an investment, especially given the current low interest rates offered by banks and building society’s on ISAs and high interest accounts. And this is a situation unlikely to change for some time yet.”

“The current return on investment from banks and building society’s is around 2.5 per cent, yet from a PV system the average return is a staggering 8.5 per cent, this figure will increase further with the inevitable energy price increases."

What is PV and how does the scheme work?

A solar photovoltaic system or (PV) as it is also known is an array of modules (panels) that are usually roofmounted (or fixed on aframe on the ground in some cases) that produce electricity.An average size system can produce half of your annual electricity consumption, larger systems of around 4kW could mean you generate nearly all your own electricity. The new scheme introduced by the Government rewards system owners via atariff for producing there own electricity.The tariff,which runs for 25 years, is indexed linked making it inflation proof and is guaranteed by the Government.

Once you have invested in aphotovoltaic system and it is installed, you sign up to the Government tariff through your utility company,which would have sent out an application pack. Once signed up you get paid via your utility company for the electricity your PV system has generated – this is recorded by ageneration meter,part of the installation. This device is asmall meter that can read how much electricity your system is generating.

Selling your electricity back to the grid and the income your PV system will generate

With the scheme you gain an income three ways. Firstly,because the government is extremely keen to encourage clean, green energy and also have major carbon reduction targets to achieve, they have agreed to subsidise the utility companies in the way of payment. This payment is called Feed in tariff income. For every unit of electricity your system produces you will be paid 41.3p – even if you use the electricity you still get paid for producing it. Secondly,because you are not buying in so much electricity from your supplier,which is usually priced at between 10p and 15p per unit, you are making a saving, which is called “reduced import savings”. Thirdly ,when you are not at home or not using much electricity your PV system will be generating power you can’t use. This excess power flows through your generation meter and is sold to the National Grid, which it sells on to other consumers,
but you get paid for it, as it is your electricity they have sold. This is called “export income.

Example of a typical 4kW system and the tariff income this system will generate:

• Feed in tariff income –£1,404.20p

• Import savings –£382.50

• Export income –£25.50

• Total income per annum –£1,812.20

This calculation is an accurate assessment on how a4kW system will perform and is based upon using SAP 2005 figures 850 kWh per kW installed with 75 per cent personal usage of the electricity produced, some companies may use higher figures that are misleading. Remember as energy prices increase so do your savings.

Read the full article here.

Shropshire Star, Wednesday 13th March 2010