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October 2011 Because of the government much reduced payment scheme this page has had to be drastically revised

This solar panels cost comparison site offers information to get three quotes anywhere in the UK.

As if there is not enough confusion about the Feed in Tariff (FIT), with the government losing a court hearing on their precipitate lowering of the rate from 43.3p per kilowatt to 21p, there are now moves afoot which could reduce the payment for electricity you feed into the grid to a mere 13.6p per kilowatt. The industry which sprung up to supply and fit the panels is now threatened.  This is a great pity as the more popular these things became the lower the price would become. 43.3p was ridiculously high and looked likely to pay the lucky few a great deal at the expense of the rest of us. But whether anyone will now install with the threat of much lower payments remains to be seen. All one can say is "watch this space".

http://www.energysavingtrust.org.uk/Generate-your-own-energy  This page does NOT deal with solar water heating, which is currently not as generously subsidised by the government - see below.

Two other very useful sites can be found at http://www.freesolarpanelsuk.co.uk/  which will point you in the direction of where you can still get a free installation and  http://ashadegreener.co.uk/energy-study/  This has some interesting figures which show the average savings on electricity bills (regardless of any FIT payments)

As I expected the government's (over) generous payments to encourage people to install electrical generating facilities has been halved for installations from 12th December 2011. However, the change was considered unlawful in the High Court and the government has appealed against this ruling. It is even possible that, if the government loses their appeal, the original payment (43p per kilowatt) will be made for installations completed by the 3rd March 2012, as was originally planned. Once the contract has been completed the tax free, inflation proofed, payments will continue for 25 years. So confusion in the industry continues, which jobs and orders for panels hanging in the balance. What a fine mess they got us in !

Even at the lower rate the scheme will still pay tax free and inflation proofed FIT (Feed In Tariff) for 25 years, so it could still be attractive to higher tax payers and people who wish to be environmentally friendly. See the updated article at MoneySavings Expert  I cannot imagine there will be many companies offering free installation, in order to for them to receive the FIT but there may be some..

Although the new FIT rate of 21p per Kw is bad news for new applicants it is not all bad news.  http://www.find-solar-installers.co.uk/solar-panel-news/reduction-in-solar-feed-in-tariff-rates-announced/  This article suggests that, because the cost of installing is reducing the amount received would still pay off the cost within 12 years and that, over the 25 years the return would still be around 5%.  Bear in mind that this is tax free and inflation proofed and that the reduction in one's own electricity elecrticity bill will probably increase as energy costs rise.

BUT I have a feeling that many people will continue to install panels, just as they may buy fair trade bananas or other 'world friendly' deals.  Yes, the payback will take longer but it is still a payback (unlike money in a bank). The earlier FIT tarrif was altogether too generous and will continue to pay the well-off at the expense of the rest.  All our energy prices were rising to pay for it.

And who is paying for all this ?  Er... YOU ARE ! Because the cost is spread between the electricity companies, who pass it on to customers.

Solar energy in most parts of the world is used for heating water. But government grants (from 1st August 2011) for renewable water heating installations are comparatively poor.  In fact, in most cases, they will only be given for equipment in houses NOT heated by mains gas (because other forms of heating: (coal, oil, wood and electricity) produce more carbon than mains gas, and the aim is to reduce the amount of carbon produced . However a one-off grant of £300 may be awarded for a solar heated hot water system. See http://www.direct.gov.uk/en/Nl1/Newsroom/DG_198244  (until they change it!)

But PV (Photovoltaic) panels (producing electricity from light) are all the rage.  Under the original scheme, providing you  were willing to spend around £12,000 (and no longer have access to that cash), there was money to be made. A quote of a particular case where someone in Southport (not the sunniest place in the UK) paid £12,500 for his installation and, in the first year received Feed-in Tariff (FIT) from his electricity company of £1,400 and is saving 50% on his electricity bill - a total yield of around 14% tax free. No risk -ree investment had paid that for years.  But, but by halving this subsidy, the government has effectively destroyed this incentive.

If you are still interested what are the rules ? (see also the Eon scheme - now in abeyance - described below)

You need a  large roughly south-facing sloping roof (25 - 45 degrees) with suitable 12 - 30 square metres (as much as 10ft by 22ft) and most companies say you need to be south of Newcastle on Tyne.  If your roof is facing East or West it would be at least 15% less effective but, nevertheless it would work during daylight.
Planning permission is not generally required as long as the installation does not protrude more than 200mm above the roof line. See www.planningportal.gov.uk But you are unlikely to get permission for a listed building or in a conservation area.

You financially gain in two ways:
(1) The electricity that is fed into the power grid, for which your electricity company will pay you around 21p per kilowatt hour (kWh) - which is more than you pay your power company now.
(2) Plus a smaller amount for electricity which you generate for your own use.
(3) AND you save again by reducing your electricity bills.

There are other examples at http://www.dulas.org.uk

 The Energy Saving Trust has cut its estimate of a typical home's annual savings to £70/year, as its research shows more electricity goes back to the grid than previously thought  See Calculator  http://www.energysavingtrust.org.uk/Generate-your-own-energy/Cashback-Calculator

You may even get your panels installed free by some companies but with free panels you don't keep 'feed-in' tariff. The company fits panels but they then keep the feed-in gain. You just keep the electricity saving, though prices are predicted to rise massively over 20 years, so the saving could increase. But leasing your roof to a company could add complications when you come to sell (or move on for other reasons!)

** These 'free' schemes are likely to have dried up because they are no longer so profitable for the companies

Rules if a company supplies panels :  The company should provide the consumer with

Try free then buy. An interesting new option from E.on. You get free panels, but it lets you buy them later to gain the feed-in tariff. But check on the later buying price.

Full list of fitters & free panel companies in the Updated Guide  "Free" panels: http://www.moneysavingexpert.com/utilities/free-solar-panels#free

For purchased panels see http://www.moneysavingexpert.com/utilities/free-solar-panels#youpay.  Note that most want an area of around 24m2.  That is no small area.  In old money that would be at least 10 foot by 22 foot. For people who are prepared the pay more it is even possible to have panels in tile form

See also : MoneySavingsExpert Solar Panels Related: Cheap Gas & Electricity, Energy Grants

Here are the details about the Eon scheme called Solar Exchange  (but read the small print on their site) Click HERE

N.B November 2011  EON are currently taking no further applications for this scheme

SolarExchange isn’t suitable for every type of home; check the following to see if your home could be:

  1. You’re an E.ON customer (for gas and electricity)

  2. Your bills are up to date and you don’t use a prepayment meter

  3. You own and live in your home which is two storeys or less* (this can include jointly owned properties)

  4. You don’t live in a flat or apartment

  5. Your home should have a loft which isn’t converted, and you should be able to access and stand in it, at its highest point

  6. Your home has a sloped roof that mostly faces south and isn’t in the shade

  7. The roof is in good condition, structurally sound and covered with concrete, clay or slate tiles

  8. Your roof is over 23 square metres – we can help you find this out after you apply if you’re unsure

  9. You’ll also need to bear in mind the following:

  10. Your home shouldn’t be listed or in a conservation area - you can contact your local authority to find out

  11. Your home also needs to be registered with the Land Registry - the majority of homes are registered, but you can check at the Land Registry website

  12. Your home needs to be in an area with O2 mobile signal strength so that a smart generation meter can be fitted to remotely monitor your system – you can check this at the O2 online coverage checker

  13. Your home shouldn’t be undergoing any building works, and there shouldn’t be any planned for the near future.

If your home is suitable and you want to have solar panels installed, you’ll need to enter into a lease agreement to keep the panels on the roof of the property for 25 years and 3 months. Here’s a summary of the offer, the steps involved after you've applied, and after we've initially assessed your home's suitability.  

1. Home survey
Your home survey will take about 90 minutes. Before this we recommend that you check with your Local Authority to be sure you don’t need planning consent. You should also check with your home insurance provider in case your policy needs updating.
2. Confirmation
One of our specialist advisors will contact you, following the home survey, to let you know if your home is suitable for SolarExchange. If it is, and you want to go ahead, you’ll need to make the £99 payment at this stage. This is non-refundable and covers the cost of the administration process.
3. Legal details
You’ll need to sign a lease agreement to keep the solar panels on the roof for 25 years and 3 months and for our partners to receive the Government subsidy payments to cover the cost of the installation. As the lease agreement is a legally binding document you should consider seeking your own legal advice before signing it.  (e.g. think about what happens when you (or your heirs) come to sell)
4. Installation
Once you’ve signed the lease agreement and the paperwork is complete, it’ll be registered at the Land Registry against the title to your property, and Mark Group, our approved solar installers, will then carry out the installation. If you have any other questions about SolarExchange please call us on 0845 300 6719.

Inflation linked, tax-free payments for up to 25 years. The Government's Feed-in Tariff (FIT) scheme means you'll be paid for all the electricity your solar panels generate. You'll currently receive a payment of 43.3p for every unit of electricity you generate and another (?) 3.1p for each unit you don't use and export back to the electricity network.

The tax-free payments will last for up to 25 years and are inflation-linked to help protect your return on investment. You'll receive FIT payments every three months, paid directly into a bank account of your choice.

1. The solar panels. Solar electricity panels convert light energy from the sun into electricity. Although they work best in full sunlight, they'll still work if it's cloudy.

2. The inverter. This converts the direct current (DC) power from the panels into alternating current (AC) electricity that can be used in your home. The inverter also allows the energy you don't use in your home to be exported to the electricity network.

3. The smart generation meter. Your smart generation meter keeps track of how much energy you're generating. It automatically sends us this information, so you don't need to take meter readings. We also use the smart meter to remotely monitor your system's performance and output.

Feed-in Tariffs (FiT) were introduced by the Government on 1 April 2010 to encourage householders, businesses and communities to install their own small-scale, low carbon energy devices. As well as saving money, the energy produced will help the UK meet its target of making 15% of all energy renewable by 2015.

As one of the UK's leading power and gas companies (Eon), we're supporting the scheme and you can apply to us to receive FiT payments if you have a qualifying installation.

see also http://www.cleanenergycashback.com/incentives for Govt incentives

http://www.yougen.co.uk/renewable-energy/Financial+Incentives/

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