Commercial Solar Power Tariff Info You Should Know
"The solar industry has been hit by a number of issues since last year and with all the commotion involving the development of solar energy, it’s hard to identify the key points you should be concerned with your own commercial solar power.
Commercial solar power is great for businesses and establishments that wish to use solar power to save on energy bills and to reduce carbon emissions. Because of the Feed-in Tariffs implemented by the Government last 1 April 2010, a lot of attention has been given to solar power and thus made it popular as a source of reliable energy for homes and businesses.
Late last year, the Government implemented a cut on the Feed-in Tariff rates which caused a big commotion. Various solar energy companies and groups raised their concerns and went to the High Court to get the issue resolved.
In 21st December, 2011, the High Court ruled that the Government had acted unlawfully by cutting the Feed-in Tariff rates. The High Court was so emphatic regarding the issue that it refused to give the Government the right to appeal.
What are Commercial Solar Power Feed-in Tariffs?
Basically, commercial solar power tariffs are the same as the feed-in tariff available to domestic users of solar panel systems. The FIT was made to encourage individuals and businesses to adapt the use of photovoltaic solar energy. With the commercial FIT, businesses can benefit from it through the following:
1) Generation Tariff – This is equivalent to a fixed amount that you will receive for every unit of energy your PV solar panel system produces. You will receive this amount whether or not you are using it for your own business or not. But because of the new entrants to the scheme, businesses will receive a lower FIT rate each year from April 2012.
2) Export Tariff – The export tariff is extra amount your business may receive for excess electricity you generate and export or sell to the National Grid.
3) Energy Bill Savings – This is probably the biggest benefit that a lot of commercial establishments will receive. Commercial businesses are bound to have larger scale PV solar panels which give them more power and energy bill savings.
4) Guaranteed for 25 years – The export and generation tariff are both guaranteed for 25 years by having a legal contract with your chosen energy company.
You should remember that commercial solar power feed-in tariff rates decrease as your PV system grows larger from 4kW, 10kW, and 100kW. For commercial solar power PV systems between 10-100kW, your business should be able to receive around £2,250 per 10kW. The payments you will receive are not tax free however, there’s still significant savings."
