Feed-in tariffs for the Commercial and Large Scale Installer
By installing a new photovoltaic system you can take advantage of the Government’s Clean Energy Cash Back scheme.
This is not just for homeowners with a south facing roof, but can benefit the larger scale commercial installer who is looking to generate solar electricity as part of a business.
Commercial Solar installations aren't just for farmers who want to cover a Paddock with an array of solar panels, it is ideal for any commercial enterprise with a lareg area of otherwise unused space. A warehouse roof is an ideal location, alternatively solar pve can make the ideal cladding.
Solar panels as cladding
Solar panels as cladding provides an excellent weather protecting final skin for a building, emphasises the building's green credentials and of course saves on the cost of a more traditional cladding which of course doesn't generate electricity and can be more expensive than solar panels.
As an additional roof cover, solar panels take the first 'hit' from the sun, limiting the stress of heating and cooling during the day that otherwise causes a level of wear on the roof (or reservoir / bunker / fuel store).
Feed in Tariff Summary
TThe Feed-intariff can be summarised as follows:
For a solar PVsystem that you have installed, for every unit of electricity you generate whether you use it or not, you will be paid up to 16p ( for a retrofit systemof less than 4kW).
If you use the electricity that you generate you will also save the money that you would otherwise have spent buying it.
If you don't use it you will also receive additional payment from your electricity company who will buy it off you.
The payment is guaranteed and index linked for 20 years.
Payments are inflation proofed.
In many casesthe payments are tax free.
For a system to benefit from the Feed-in Tariff, it must be installed by a company that is registered under the Microgeneration Certification Scheme
For the Commercial Solar PV Installer
Installing a large scale solar PV array brings economies of scale both for the owner and us as the installer. As the system gets larger the cost per Kw installed will come down. Our overheads per kW installed are less along with the cost of installing a single set of framing, cabling and electrical infrastructure.
The larger systems benefit from the Feed in Tariff, however at a reduced rate. The rates are evaluated every 3 months so check http://www.solaruk.com/commercial%20solar.asp for the current rates.
With a large scale system mounted on A frames on a flat roof, the panels can be oriented to an optimum angle maximising the energy generated. The difference can be as great as 20% against a system that is still economically viable but not at the ideal angle!
The 4kW break point was set as that is the level of power generation where a heavier - than a domestic - connection to the grid needs to be installed. Commercial installers need to check their mains connection, possibly gaining permission from their electricity supplier, confirming that a more powerful array is possible.
Potential installers should also consider whether the location that is proposed is right for a relatively large investment that needs to last in situ for 20 years.
Investment in a large scale array can bring certain tax advantages.
Economics of commercial solar - Brief Case Study
Using an example of a 30kW system, we would expect an initial cost in the order of £110K - £120K depending on the nature of the installation. But, with the ability to write this off against profits, the real cost to the business will come down to nearer £80K which, even with the lower FIT of 31p applying. this should result in an annual income of over £8 ,000 resulting in a payback within 10 years and a return on the investment of over 10%.
Why use SolarUK?
SolarUK are among the longer established solar panel installers in the UK. We sit on the board of the Solar Trades Association, effectively we are central to the Solar Industry in the UK.
Installing a system that must still work in 25 years as well as it works now requires both skill and experience. While there are many new solar installers available following the implementation of the Feed in Tariff scheme, it is certain that in a few years many of them will no longer exist. SolarUK is still able to honour guarantees given 10 years ago, it is certain we will still be around to honour guarantees in 25 years time!
There will also be additional payments for exporting to the grid
An added bonus is that there are further payments for exporting surplus energy to the grid.
It’s an important component of the Low Carbon Transition Plan, which aims to turn the UK into a low-carbon economy. At its core are legally-binding, five-year carbon budgets within which government departments will have to stay, much like financial budgets. The target is a 34% reduction in greenhouse gas emissions by 2020. Although cars, businesses and farming will be affected by measure, half the reduction will come from clean energy generation.
A legally-binding EU target already obliges the UK Government to generate 15% of its total energy needs from renewable sources by 2020, a figure which, if realised, will represent a ten-fold increase in renewable energy generation.
Should you go for solar PV? We answer your questions: Farmers Weekly