The Guardian reports on the Feed-in Tariff

Last week the Guardian reported on “Getting paid to produce renewable energy.”

In the current economic climate investing in solar panels may appear costly however with the support of a government scheme you can now make a profit from producing your own energy.

The government’s Feed-in Tariff (FIT) scheme is designed to make it worthwhile to produce renewable energy, for example, through installing solar panels on your home, by providing you with a return on your investment.

Fundamentally the FIT scheme is designed as incentive for individuals to move away from conventional fossil fuels to renewable energy sources, contributing to help the UK meet its 2020 renewables target.

In terms of solar photovoltaics essentially the FIT scheme is a government legislation which guarantees a fixed premium rate for renewable electricity fed back into the national grid. Electricity companies are required by government legislation to buy the renewable electricity produced by the solar panels, with additional costs passed onto the customers.

According to British Gas, “As many as half of Britain’s homes could earn around £600 a year from roof top solar panels and some as much as £1000.”

The Guardian reports that “The UK is on course to meet its 2020 renewables target. A new report from the National Grid has published these exciting findings and statistics on the proposed uptake of microgeneration, with people producing their own power using technology such as solar panels.

A capacity of 31,950 megawatts of existing and proposed renewable energy generation will be connected over the next ten years. Around 4,950 megawatts of renewable generation capacity is already connected to the transmission network, with proposed projects this year totalling a further 27,000 megawatts.

This means there would be enough to power more than 20m homes and would surpass the 29,000 megawatts estimated by the National Grid that would be needed to meet the 2020 target of 15% of the country’s total energy demand through renewable energy.

However, the report cautions that the figures are only a step in the right direction and a complete reform of the market is the only way to ensure the right conditions for investment in future projects.

But if Solar PV panels turn the sun’s abundant, clean energy into electricity that you can use for free in your home, then by installing solar panels you can significantly reduce your electricity bill and even generate a worthwhile income thanks to the FIT scheme.

And if you buy a solar PV system you will be paid for all the electricity you generate, whether you use it yourself or sell any excess to the National Grid. For a typical household installing a 4kwp system the annual savings and income can be worth well over £1,700.”

Full article: The Guardian