Grid Tied Scheme Explained

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What is a Grid Tied Scheme?


Grid tied Scheme explainedA Grid Tied solar PV system means that you will be paid for any electricity that you generate in your property. At the current rate, a Grid Tied Scheme will pay a maximum of 14.38p for every unit (kWh) of electricity generated. You can also save money by not having to import electricity from the grid, and should you generate any surplus, it will be sold back to the grid.

Solar panels convert energy from the Sun into a DC voltage. This voltage is converted to an AC voltage and synchronised with the incoming mains from the grid by an inverter. The generated electricity is distributed into the property via a breaker in a consumer unit as well as being able to feed back into the grid. The amount of electricity generated is recorded by a dedicated kWh meter.

Example of Grid Tied Scheme:

A house with a 4kWp system generates 3,900kWh per year.
Annual revenue from feed-in tariff = £560.82
Annual saving on importing electricity (based on 14p per unit) = £273.00
Annual revenue from exporting (assume 50% exported) = £93.02
Total revenue per year = £926.84
CO2 saved = 1,650 Kg

Feed in tariff payments are paid quarterly by your chosen energy supplier. They are tax free and indexed linked meaning that the your return on investment grows, shortening the time to recoup your capital costs.

See Also:

Grants and Incentives
Feed in Tariff
Renewable Heat Incentive

Green Systems Engineering and Grid Tied Scheme Explained