Renewable energy has been a hot topic in the United Kingdom for years now, with the government setting ambitious targets to eliminate greenhouse gas emissions by 2050. Solar power has emerged as a key player in the renewable energy sector, with the UK experiencing a surge in solar panel installations in recent years. However, the question of how much the electric company pays for solar power remains a mystery to many.
To understand how much the electric company pays for solar power, it is important to first understand the concept of feed-in tariffs (FITs). FITs are a government scheme aimed at encouraging the adoption of renewable energy sources by providing financial incentives to those who generate their own electricity through renewable sources such as solar power. Under the FITs scheme, energy suppliers are required to pay a fixed rate for every unit (kilowatt-hour or kWh) of electricity generated by a renewable energy source.
The rate at which energy suppliers pay for solar power varies depending on the size and type of installation, as well as the date of installation. There are two types of FITs: the generation tariff and the export tariff.
The generation tariff is the rate at which energy suppliers pay for each unit of electricity generated by a renewable energy source. The rate is determined by the size and type of installation, as well as the date of installation. For solar panel installations, the rate currently stands at 3.61p per kWh for installations under 10kW, 3.32p per kWh for installations between 10kW and 50kW, and 1.82p per kWh for installations between 50kW and 1MW.
The export tariff, on the other hand, is the rate at which energy suppliers pay for each unit of excess electricity exported back to the grid. This applies to installations with a capacity of up to 30kW. The current rate for the export tariff is 5.38p per kWh.
It is worth noting that the FITs scheme was closed to new applicants in April 2019. However, those who were already receiving FITs payments will continue to receive them until the end of their contract period, which is typically 20 years from the date of installation.
In addition to FITs, there is also the option of selling excess electricity back to the grid through the Smart Export Guarantee (SEG) scheme. This scheme was introduced in January 2020 to replace the export tariff under the FITs scheme. Under the SEG scheme, energy suppliers are required to pay a rate for each unit of excess electricity exported back to the grid. However, unlike the export tariff under the FITs scheme, the rate is not fixed and varies between energy suppliers.
The rates offered by energy suppliers under the SEG scheme vary depending on a number of factors, including the type of energy supplier, the time of day, and the volume of electricity being exported. Some energy suppliers offer fixed rates, while others offer variable rates that can change on a daily or even hourly basis. As such, it is important for solar panel owners to shop around and compare rates from different energy suppliers to ensure they are getting the best deal.
In conclusion, the amount that the electric company pays for solar power in the UK varies depending on a number of factors. Under the FITs scheme, energy suppliers are required to pay a fixed rate for each unit of electricity generated by a renewable energy source, while the SEG scheme allows solar panel owners to sell excess electricity back to the grid at varying rates depending on the energy supplier. While the FITs scheme is no longer open to new applicants, those who are already receiving payments will continue to do so until the end of their contract period. It is important for solar panel owners to shop around and compare rates from different energy suppliers to ensure they are getting the best deal.
Leave a Reply