Now is a good time to install a solar PV system and start generating your own clean green solar energy to gain immediate savings on electricity bills before the Feed-in Tariff (FiT) scheme ends in March.
To encourage homes and businesses to invest in renewables the Government introduced the FiT Scheme in 2010. The Scheme pays registered generators for producing and generating low carbon electricity and energy that gets exported to the grid.
FiT Scheme ending 31st March 2019
The Governments FiT Scheme ends on 31st March 2019 for all new registrations but existing owners of solar PV systems will continue to receive payments for their remaining tariff agreement period.
The solar PV installation process takes around 3 months to complete so now is the time to take action in order for your business to ensure your installation is able to achieve deadline.
How the FiT scheme works
The FiT scheme pays registered owners of solar PV systems for every kilowatt of electricity produced then exported to the grid.
The scheme energy regulator Ofgem E-Serve manage the Scheme.
Three ways to benefit from the FiT Tariff:
- Generated tariff: paid a set rate for each unit (of kWp) of electricity you generate. The tariff levels are guaranteed for the period of up to 20 years, index linked.
- Export tariff: Payment for rate for each unit exported back to the grid.
- Reduced bills: Generating electricity means you won’t need to buy as much electricity.
The Government have cut the tariffs since 2010 to control costs due to the increase in the up take to the Scheme. The latest FiT tariffs can be found on the Ofgem website. Relevant tariffs have been adjusted by RPI of 4.1 percent effective 1st April 2018.
This is still a good proposition for those considering renewable energy for their business but there are other reasons worth noting.
Prices of Solar PV systems predicted to fall
The EU lifted import restrictions on solar panels and cells from China entering the EU in September. As a result this move is expected to reduce overall solar PV installation costs.
The decision to remove the measures was made to boost the supply of renewables across the European Union to meet climate change targets.
The import costs should filter down to consumers and businesses as the supply chain becomes easier and more accessible
Fuel price instability – PPA solution
With energy prices so volatile and unpredictable, businesses will take comfort in the knowledge they can apply for a long term flat rate solar tariff with a Power Purchase Agreement (PPA). If the business meets the PPA criteria the business will make considerable cost savings and gain peace of mind from a flat rate tariff (linked to RPI).
The design, install and maintenance of the system is taken care of by experienced professionals.
Prices of fuels purchased by manufacturing industry in Great Britain
Government data indicates a 10% increase of electricity prices of manufacturing businesses for each quarter from Q2 in 2017.
Further prices rises of 3.8% hit consumers today as British Gas increase its standard variable rate for the second time in the year.
Other benefits for adopting clean energy
Businesses, consumers and governments need to reduce their reliance on fossil fuels to meet climate targets of reducing emissions by 80% by 2050. Solar gives generators long term energy stability and energy security from the power of the sun.
Businesses adopting sustainability policies also benefit from:
- Improve brand and competitive advantage
- Attract Investors
- Attract and retaining talent and high levels of motivation
The FiT is a great incentive to get a solar installation up and running and registered before 31 March 2019. While other factors such as improving business sustainability, reducing operating costs and gaining energy security will all contribute to profitability of your business.
The introduction of the Power Purchase Agreement (PPA) gives business owners a capital free option of leasing the roof space of their property for a solar PV system. Business capital is free for investment in core business growth.
Contact Zestec today for more information on your energy solutions options.
Further information on FiT from www.ofgem.gov.uk/fits
Tomorrows Energy and the future consumer https://www.ofgem.gov.uk/tomorrows-energy-and-future-consumer/discussion-papers
Find out more at Energy Savings Trust http://www.energysavingtrust.org.uk/renewable-energy/electricity/solar-panels/feed-tariffs