What are feed-in tariffs?
As part of the push towards a greener UK, new legislation means that energy companies have to pay you for any renewable energy you produce. These payments are called Feed-in Tariffs (or 'FITs'). The level of the payment (the 'tariff') varies for different renewable energy sources and installation sizes. Our Solar section has more information.
Am I better off buying a PV system or having a Free Solar package?
We aren't financial advisors, and it is really down to your personal circumstances. The new government-led FITs are projected to give you an annual tax free 9-12% return on your money for a 20 year period and a breakeven time of about 10 years. If your time horizons are shorter (maybe you will move), you do not have the £4-6k available to invest in solar panels and/or you have something better to do with the money, a free solar package may be a better option (assuming that your roof is eligible).
How much money will I save by using free electricity from solar?
It could be a third (assuming medium energy use and - per the Energy Saving Trust assumptions - that you use 50% of the electricity you produce). But the actual amount will always depend on how and when you use electricity. You'll get a lot free, for example, if you are in during daylight when the panels are producing and/or you set timers for equipment like washing machines. Whatever the figure, the savings are likely to increase because everything you produce is inflation proof (energy prices have doubled over the last 5 years, according to research by uSwitch last year)
How can I be sure I am using the free electricity?
Everything happens automatically. When the solar panels are fitted, you use your electricity as normal. If there is electricity being produced by the panels during daylight hours when you use anything electrical it will use that first automatically.
It’s also about changing your behaviour and attitude to energy usage when you’re receiving free and cheap electricity and training yourself and your household to use high consuming items such as washing machines, dish washers, tumble dryers during the daylight hours.
If there isn't enough being produced for what you need, or if it is night-time, then you will automatically use electricity from your usual supplier.
How does all this work with my existing power company?
It doesn't affect anything that you already do and so you don't need to worry about anything. You stay with whatever energy provider you like, and switch when and if you like. Your utility company will take its normal reading and bill you as usual. Of course, this reading will be lower and so your electricity bill will be less (and if you buy a solar PV system up front, you will receive a cheque as well as a bill!). And that's true whether you buy electricity and gas together or individually from different companies.