PV Solar Panel Frequently Asked Questions

There are many things to consider when thinking about PV Solar Panels, below we have addressed the most common question. If you would like to ask us any questions, please do feel free to contact us.

 

What are PV Solar Panels?

Put simply, ‘photovoltaic’ (PV) solar panels converts sunlight into electrical power that can be used in your home or commercial premises. PV solar panels are made up from silicon solar cells that are wired together inside the panels to produce direct current (DC) when exposed to light.

 

It’s a common misconception that solar panels only work when exposed to the heat from the sun. This is not true. The energy produced is from light (‘phos’ is Greek for ‘light’ and ‘voltaic’ is derived Italian physicist Volta, whom the unit of energy was named after) so the PV panels work under cloud cover and even rainy days. Of course the stronger the sunlight, the more energy produced.

 

How Do PV Solar Panels Work?

The photovoltaic cells in your solar panels convert light into electricity called ‘direct current’ (DC) which is then converted by an inverter into ‘alternating current’ (AC) to enable it to be used to power your home, office, commercial or industrial premises.

 

Since you are generating energy from the source, the Government pays you regardless of if you use it and any excess electricity you produce is sold back to the National Grid. This means that not only will PV solar panels save you money on your energy bills, they will start to earn you money as soon as they are installed.

 

How Do You Earn Money Through Generating Electricity?

‘Feed-In Tariffs’ (FiTs) were introduced by the Government in April 2010 to encourage the investment in low carbon ‘green’ technologies towards its legally-binding target of creating 15% of our total energy needs from renewable sources by 2020. Technologies such as PV solar panels.

 

The FiTs offer three distinct financial incentives -

 

• A payment for each unit of electricity produced, even if you use it yourself – 43.3p Bonus payments for each unit of electricity you export into the grid – 3.0p

• A reduction on your standard electricity bill, from using energy you produce – if you’re generating it yourself, you’re not buying it form the grid

 

These payments are fixed and guaranteed by the Government for a period of 25 years. In addition they are index-linked (directly related to the cost of living and rising accordingly) and tax-free.

 

Many customers see typical returns of around 10% of the system cost, so a £10,000 installation will generate a return of approximately £1,000/year. This way, the system pays for itself in a decade and you are left with pure profit from year 11-25.