Save CO2 and Money
PV systems generate clean energy day in, day out, replacing electricity that would otherwise need to be generated by conventional power stations. A 1kWp PV array will generate around 750kWh (units) of electricity a year - although actual output may well be higher in many locations.
Each unit of electricity generated by a PV system reduces the amount of CO2 that is emitted from conventional power stations. A 1kWp PV array will save about 0.4 tonnes of CO2 per year. Over 25 years, a 1kWp system will generate over 18,000 kWh of electricity and save over 10 tonnes of CO2.
While the CO2 savings of a PV system are reasonably clearcut, the financial savings depend on a number of economic factors that are variable such as future increases in electricity prices.
As from the 1st April 2010, all the electricity generated by PV systems will be eligible for feed-in tariff (FIT) payments under the Government's new Clean Energy Cashback scheme. The payment will be made for each unit (kWh) of electrity generated, even if it is used on the site. An additional export rate is payable for surplus electricity that is fed into the national grid. The levels of payment vary depending on the type and size of the PV system and also when it is installed. For an average domestic system installed on an existing property between July 2009 and April 2012, the owner will recieve 41.3p per unit generated and an addtional 3p per unit for any electricity exported. These paymetns are guarenteed for 25 years, and will be subject to inflationary increases.
Existing PV systems installed before 15th July 2009 will only qualify for FITs if the owners have applied for the system to be accredited under the Renewables Obligation on or by 31 March 2010.
Further details of FIT payment levels are detailed at Feed-in Tariffs.
The FIT greatly reduces the period that it will take for a PV system to pay for itself and once paid off, a PV system will provide free electricity and save money for many years to come. These savings can be expected to grow rapidly as electricity prices rise.
