Solar panels biggest earning contributor, the feed-in tariff is to be halved as of 12th December 2011. Although solar panels, with their ability to reduce electricity bills and CO2 emissions, have only become hot news over the past year or so, the Government has announced plans to cut the subsidy from 43p to 21p meaning investors will earn only half of the money that is currently up for grabs.
How does solar work?
When installed, solar panels catch the sun’s rays and absorb solar energy. When harnessed using renewable energy technology, solar panels enable you to generate your own electricity.
Benefits
Solar panels have a number of benefits. Aside from reducing investors’ carbon footprint, there are three main areas where solar panels can make you money.
Free electricity
The energy you generate via solar panels is immediately available to you free of charge. It does not get drawn through your electricity meter, so reductions in your electricity bill are achieved from the date of install.
Get paid for the electricity you generate
This is one of the ways where the feed in tariff (FIT) comes into play. Under the current subsidy, you can be paid for the electricity you generate, whether you use it yourself or not. At present, the Government pay 43.3p to home owners for every unit of electricity that is generated, but recent reports have revealed this will be cut to 21p as of 12th December 2011. A cut meaning only half the amount of money can be earned using solar PV.
Sell electricity back to the grid
Aside from being paid for the electricity you generate, you can also be paid for any excess electricity you sell back to the grid. This equates at 3.1p for every kWh of electricity that is sold back.
Act now to make £55,000 over 25 years