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HomeSun led the transformation in the UK of solar for homes with the launch of Free Solar in 2010 using the Feed-in Tariff subsidy. Government has now penalised Free Solar by reducing the FIT for Free Solar systems, and so HomeSun is turning its attention to other products which give homeowners some independence from big energy companies. One of these products - naturally - is a ground-breaking deal on buying solar PV.
Feed-in Tariffs (FITs) are a form of government subsidy. Basically, legislation introduced in 2010 means that electricity companies have to pay for every unit of renewable electricity produced by homes. That made buying solar much more attractive for homeowners, but it they would still have to find between £10,000 and £15,000 to buy the system in the first place. HomeSun turned that 'problem' completely on its head. Instead of the homeowner buying and installing the system, we did - and we recieved the Feed in Tariff. What did the homeowner get? As much as they could use of the free solar power generated by their free solar PV system.
Through our Buy Solar and Free Solar offers, HomeSun aims to give as many people as possible some freedom from the big energy companies, and a little more control over the amount of money they spend on electricity.
At times, this feels as though it is counter to the direction of government! The cuts in subsidies will make Buy Solar less attractive after July 1st 2012, and Free Solar will all but disappear completely. This is disappointing when the FIT programme stimulated such fantastic growth. Over the last couple of years over 100,000 homes have been installed with solar PV compared to around 5,000 in all the years prior to the introduction of FITs. The UK has seen the first 'solar streets', communities joining together to get a 'mass' installation, and social networking sites with positive conversation about energy! All firsts.
This excitement may now evaporate. Though HomeSun has other ideas up its sleeve.
There has been a great deal of media coverage recently about energy price rises – 20% or more. For many, this is the last straw. A greater percentage of everyone's income (or savings) are going on energy, and more and more people feels vulnerable to energy price 'hikes'. Solar electricity, paid for solar PV panels and free solar panels which HomeSun provided until March 3rd 2012 are a great way to get real savings from bills, and some energy independence.
Mr Cotton on the Isle of Wight had his free solar HomeSun system installed last year. He’s reading his meter regularly, and he estimates that he is saving between one third and one half on his electricity bill. ‘My free solar panels look fantastic’ he says ‘and they give me free solar power – natural and ‘green’. What could be better?’.
Alan isn’t alone. Customers across the country are reporting similar levels. There are now whole streets that are installing paid for solar systems for which they have negotiated a group deal, or free home solar – Delabole in Cornwall and Burgess Hill in East Sussex, for example. Often this starts with one or two neighbours who find HomeSun, learn about solar and they can earn and save with Feed in Tariffs ... and they tell everyone else in the street.
Of course, there is then a slight pressure on home value - if the whole street has solar except for you, is your home worth the same? You don't have the same electricity savings and there is no on-going income. An interesting challenge!
Solar PV (paid for systems) and Free solar panels have both been given a big boost with the Feed-in Tariff (FITs) scheme which the Government introduced on 1st April 2010. Prior to that grants were available for those homeowners who wanted to install solar panel systems.
The Feed-in Tariff scheme provides a benefit for those who own a solar panel system. A payment is made for every unit of electricity generated by the solar PV sytem. This 'generation tariff' is paid regardless of whether a home is using the electricity or not, and it is currently 21p for every unit of electricity (provided the home is EPC level D or above). For any electricity that isn't used, but exported to the national grid there is an 'export tariff' of 3.1p. Each of these payments is made tax free, and they rise with RPI (so they go up with inflation), and they are payments for 25 years. These earning are in addition to savings that are to be made on electricity bills - because you use free solar energy, you are importing less from the national grid and so your bills will come down. A well sited system, could save you around a third on your electricity bill. To give an example of the overall picture, a well sited 3.92 kWp system with a yield of 900kW per kWp, could save/earn you around £1000 per year. Not bad!
But the 'subsidy pot' from government is running down and there are changes on the horizon on July 1st: the Feed in Tariff will go down; there are questions about whether it runs for 20 years or 25 years, and whether or not it should be tied to the rate of inflation.
If ever you were thinking of solar, now is the time to 'jump'.
