Making it easy to be green
Not only have falling purchase and installation costs made solar more affordable, but current government incentives mean that renewable solar energy systems have never been more financially attractive than they are right now. Here’s all you need to know about how the government is helping you go green with solar.
The Feed-in Tariff (FiT) was a government incentive which guaranteed owners of PV panels money for the excess energy they produced. The deadline for new applications ended on the 31 March 2019, however, those who installed panels with an MCS certificate dated on or before 31 March 2019 will still receive FiT payments with a 20-year guarantee and adjustments for inflation.
Going forward, the government has proposed a Smart Export Guarantee (SEG) system. This would require energy suppliers to offer a payment to solar PV households, as well as small-scale renewable electricity generators, who export power to the grid. Large energy suppliers would then offer a price per kilowatt hour for the exported electricity. Due to the exported energy requiring accurate metering, households must have Smart Meters installed to be eligible, hence, ‘Smart Export Guarantee’.
Currently in a short limbo period following the conclusion of the FiT scheme, we are awaiting clarification from the government to ensure our customers receive fair payment when exporting electricity to the grid. The AES team will keep all our customers up to date as we receive further information.
The Renewable Heat Incentive is the solar thermal equivalent of the Feed-in Tariff, providing financial support to owners of eligible systems in the form of quarterly cash payments, over a period of 7 years. For this incentive, the current Solar Thermal rate (as of April 2019) is 21.09p / kWh.
Even on days when your system is not generating excess energy, you will be minimising the amount you need to purchase from the grid and your reliance on expensive energy bills. While this varies based on your system size and household energy usage habits, the below table illustrates the potential savings on bills based on current market energy costs.
|Location||Savings on bills (£/year) last updated April 2019|
|Home all day||Home in the mornings||Home in the afternoons||Out all day until 4pm||Out all day until 6pm|
|London, South England||£240||£195||£175||£120||£100|
|Manchester, North England||£230||£185||£165||£115||£95|