Solar PV – The Smartest Investment For 2011? And You Get Free Electricity!

A 10% tax free, index linked income for 25 years, guaranteed by the Government that’s environmentally friendly and provides free electricity.

When you install a Solar Photovoltaic (PV) system at your property you can now earn around 10% per annum tax free guaranteed by the Government for the next 25 years. Solar PV is the amazing investment and environmentally friendly opportunity that was introduced by the UK Government in April 2010. This is when the ‘Feed in Tariff’ (FiT) was introduced to increase the rate you get paid for the microgeneration of electricity at your premises.

The FiT is index-linked for the next 25 years making it inflation proof. In the context of the Spending Review in October it is one of the few areas where there is real certainty to invest your money safely and wisely for the future with exceptional, tax free returns.

In setting out to stimulate consumer demand for microgeneration (the production of clean energy on a domestic scale), the Government have set the FiT very high for a limited period. This means that only households and commercial enterprises that complete their installation before March 2012 will qualify for the highest rate tariff.

As soon as you are installed you are locked into the index linked scheme and its benefits for the next 25 years. This includes the annual cash benefits of the FiT, free electricity and knowing that you are reducing your CO2 footprint.

So what are the catches? There aren’t any. Your installation needs to be carried out by an MCS qualified installer in order to claim your 10% tax free, indexed linked, 25 year income that’s guaranteed by the Government.

The roof needs to be southerly facing and shadow free for most of the day. The panels are mounted onto the roof using a hidden lightweight aluminium framework. The DC electricity produced by the panels during daylight hours is converted to AC by an inverter. This will usually be in the loft space or near your electricity supply.

Finally, a meter measures the amount of electricity that your system generates (in the same way that your current meter measures what you use and are charged for today). A typical installation will involve two installers and a qualified electrician working at your house over a couple of days. It is a straightforward job with most of the work taking place outside.

The highest rate FiT is 41.3p per kWh and applies to systems up to 4kW in size. This is typically four times the price paid for electricity from the grid and is paid regardless of how the electricity is used and even if you don’t use any of it.

On top of the FiT, you add the value of electricity that you have saved by using some of what you’ve generated. Finally there is an income called the Export tariff which is calculated as 50% of the electricity that you generate being fed back into the grid.

If any of this sounds complicated, it really isn’t; once your installation is completed, the Solar PV system is connected seamlessly to your present electricity supply and your new meter is ready to calculate how much electricity you have generated and what your annual revenue is.

And there are a range of investment options depending on what return you are looking for. From wholly owned systems through shared ownership and even free systems, where you rent your roof for free electricity, the options are many and varied.

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