Solar PV Explained

Solar Panels transform daylight into electricity, which homeowners can then turn in to earnings and energy savings thanks to Feed-In Tariffs (FITs).

The sun’s energy is absorbed by solar cells in photovoltaic (PV) panels before being converted into electricity. This can then be used in the home or fed back into the national grid.

How does Solar PV work?

Daylight causes an electric field across layers of silicon in the cells, creating an electric current.

Within seconds of reaching the earth’s surface, photons from the sun have become electrons and they are then powering devices in homes across the country.

Home Solar panel systems are hooked up to the national grid so that any extra electricity created by a Solar panel system can be passed through to the national grid. A fee is then paid by the electricity company for every kWh supplied.
 

How will I make money?

In the UK, an increasing number of households are switching on to the advantages of Renewable Energy and investing in their own Solar photovoltaic panels.

Buoyed by financial incentives set up by the Government and supported by energy suppliers, many see an investment in Solar Energy in the UK as a great way to cut bills and make money.

Once a reputable company has installed solar panels, a small device called an inverter will convert the DC into AC power.

Your home will also be fitted with a monitoring device to keep track of the total amount of electricity generated by your PV panel Solar system.

Solar panels do not need direct sunlight to function and, even on a cloudy day, will generate some electricity. And so, as the daylight hours pass, your earnings will increase.
 

The FITs scheme allows households with solar PV panels to earn money in three ways. Firstly there is the generation tariff, which pays up to 21p for every unit of electricity produced, regardless of whether it is used or exported.

Then there is the export tariff – an additional 3.1p paid for every unit exported to the national grid.

Read more about Feed in Tariffs.

What happens to the electricity I make?

Finally there is the added bonus of cheaper electricity bills because you will be using power at the source. In addition to the Feed in Tariff payments, an average household using half of the electricity produced can expect to save over £121 per year on their bills.

Anyone generating electricity from solar PV panels is eligible for the FITs, providing no more than 5 Megawatts is being generated per year. Very few households are likely to exceed that limit, considering that 5 Megawatts is enough to power a large factory!

Solar PV panels can be installed without planning permission, except for homeowners in conservation areas or in listed buildings. In which case, advice should be sought from local councils before going any further.

Properties will need at least 8m² of South, South East or South West facing roof space to fit Solar panels which is free from shading by trees, buildings, etc.
 

Once connected to the grid, systems need very little maintenance.

FITs are paid for by the energy companies and are driven by the Government’s desire to create a sustainable energy mix and reduce climate change effects.

The ultimate goal is to increase the total percentage of energy that comes from renewable sources from 2% (in 2009) to at least 15% by 2020.

Read more about Feed in Tariffs.