For many electricity is merely an outgoing cost, and for businesses that run large premises this is often a very large outgoing. Through the government’s new Solar Panel Feed In Tariff however, businesses could see their outgoings becoming incomes.
The scheme which opened on the 8th February 2016 sees businesses that have solar panels installed receive a ‘generation tariff’ which are payments from their energy supplier for each unit (kilowatt per hour) of electricity generated. These tariffs vary according to the size of the solar panel system installed as well as the type of solar panel used as well as how energy efficient your business premises is.
In addition to the payments that can be made to your business for merely using your own means of generating electricity, business with their own solar panels are also able to earn an ‘export tariff’ which is a tariff paid to your business by your energy supplier for any units generated that are not used. Currently the export rate is £0.485 per unit. Alternatively, it is also possible to opt for the energy supplier to automatically take and pay for half of the energy your generate through your solar panels.
Considering that solar energy is, on the whole, a more efficient means of generating electricity than traditional means, opting to generate your own electricity using solar panels could save your business substantial amounts of money and that is without counting the earnings that can be made from the Feed In Tariff. Click solar panels for businesses for more information.
In order to apply for Feed In Tariff support from the government, an application for business solar panel accreditation should be made through one of two schemes. The Microgeneration Certificate Scheme or MCS-FIT accreditation is most suitable for business premises with solar panels that have a Declared Net Capacity (DNC) of up to 50kW. Alternatively, the ROO-FIT accreditation is most suitable for business premises with a solar panel installation that have a DNC of over 50kW.
Once your accreditation has been approved, your tariff rate will be approved and you will begin receiving FIT payments for the duration of your eligibility period, which is unto 20 years for solar panel installation systems.
In order to receive the highest tariff, businesses aiming to install a solar panel system must fulfil the minimum energy efficiency requirement (EER). For some properties this is a minimum Energy Performance Certificate (EPC) grade of D or above in order to receive the highest tariff.
If you found this post interesting, have a read of our most recent post about the cost of commercial solar panels.