Solar PV

Solar PV is the form of renewable energy that has really captured the public’s attention over the last two years or so, resulting in a mini ‘goldrush’ thanks to incentives in the form of the government’s Feed-in Tariff’s Scheme (FiTS).

Solar PV is expensive, but the good news is that costs are falling dramatically and that means that most renewable energy experts expect solar PV to achieve grid parity (the point at which solar PV costs fall to the level of conventional fuels or lower) either this year or next.

So far, FiTS has rewarded householders and businesses exporting energy from their panels to the national grid with incentive payments of up to 43p per kWh of energy generated.

This rate was due to be changed to 21p per KWh from April this year in order to avoid the government’s budget for FiTS being depleted. This has generated enormous controversy, particularly among installers and this is why solar PV is in the news right now.

A legal challenge from the solar industry has seen a group of solar companies take the government to court, following their proposals to slash solar subsidies. Currently the industry is in limbo over FiTS and will remain so until a firm and final ruling has been made.

Benefits of installing a solar PV system

However, despite fears concerning the lower rate, it is worth bearing in mind that solar PV is still very much value for money, as it will not only help you to reduce your electricity bills but the lower Feed in Tariff rate will still enable you to obtain a return on your investment, particularly as costs for solar PV continue to fall.

Types of solar photovoltaic panels

There are various types of solar PV panels:

• Monocrystalline PV – the most common and most widely available, the silica cells that generate the electricity have been cut from a single piece of silica crystal.

• Polycrystalline PV – not as efficient as monocrystalline PV, polycrystalline PV panels have silica cells which are made from bits of silica poured into a mould. Polycrystalline tends to be cheaper than monocrystalline.

It is even more important with solar PV to have a roof that faces south or south-east and which is not overshadowed by trees or tall buildings.

How much does a solar PV system cost

Expect to pay at least £6,000 for a PV system, although for a really good one should pay at least £10,000. This includes an inverter, which converts the Direct Current (DC) generated by the panel into Alternating Current (AC) for household use, as well as various other components.

If this sounds prohibitively expensive bear in mind that a few years ago the price would have been more along the lines of £16,000 to £18,000 and that PV prices are likely to fall even further in the near future.