Solar PV installations are being touted by people as major energy savers as well as contributors. Priced high during the early stages of their development, they have become affordable with falling prices owing to cost efficient production technologies. Here is a brief cost and return analysis of Solar PVs.
The average power consumption of a family in UK annually is around 4600 kWh. Solar PV installation can supplement power by producing 4,000 kWh of power annually. Solar PVs normally need about 21m² of roof space and their cost ranges between £4,000 and £6,000. Feed In Tariff payouts by the government for energy production is effective in recovering the cost incurred over a period of 20 years and also to add to savings.
|
Approximate Roof Space Needed (in m2) |
System Size in KW |
Estimated Cost () |
Estimated Annual Output in |
Estimated returns over a period of 25 years including profit |
|
8 |
1 |
2,500-3,000 |
850 |
3600 |
|
14 |
2 |
3,000-4,000 |
1,700 |
7360 |
|
21 |
3 |
4,000-6,000 |
2,550 |
10680 |
|
28 |
4 |
6,000-8,000 |
3,400 |
14000 |
Earnings from Solar PV
|
Annual Earnings |
From |
|
490 |
Generation |
|
80 |
Export |
|
125 |
Electricity Bill Savings |
|
695 |
Total |
Feed-in tariff rate
The payout by the government for power generation and consumption is 14.38 p per kWh which means an annual earnings of about 400 pounds annually via a 3kW panel. This is free of tax and spread over a period of 20 years.
National Grid sell back rate
The energy collected by the government through export to the grid is sold at a rate of 4.77 p per kWh. The exported energy is the energy that is produced by the PV and not used at the end of the consumer. This yields about £60 per annum.
Savings on energy bills
The savings on energy bills rise by using the free electricity produced by the Solar PV which works out to about £100 annually. To top it all it you are contributing to a greener planet by reducing carbon emissions!
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