Green Incentives Give Commercial Property A Cash Boost

Owners of large commercial premises producing their own energy are making thousands of pounds in extra cash thanks to a Government incentive about to celebrate its first anniversary.

The Feed in Tariff scheme (FITS), which was introduced in April 2010, is a cash back initiative to encourage and enable people to adopt renewable energy sources.

It works by the customer receiving a cash payment for a fixed amount per unit of electricity generated by the solar system for a 25 year period, with any unused units being sold back to the national grid.

The scheme is already proving hugely popular with customers expecting the panels to pay for themselves within nine years once the FITS payment and the savings made on energy bills are taken into account, with a typical return on investment of 10 to 12%.

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Solar PV systems work by converting sunlight into electricity using cells made up of semi conducting material. When light shines on the cells, it creates an electrical field allowing electricity to flow.

He said: “The incentives announced last year certainly makes renewable energy a lot more accessible to a lot of people. The fact a guaranteed income for a 25 year period can be generated means the system pays for itself very quickly. After that, the money made is yours. Long term, it will reduce electricity bills indefinitely, with panels expected to last well beyond 30 years.

This is an easy way for owners of big commercial buildings to generate additional income, and at the same time slash their bills. When you take into account the sums you’ll receive as part of the initiative and the savings you’ll make, it seems an obvious place to invest any spare capital.”

In addition to the financial savings, there will be significant carbon (CO²) reductions, especially on large scale solar PV systems.

Martin concluded: “Since the incentives were introduced we’ve noticed a surge in enquiries both from domestic and commercial customers. Green energy is taking time to catch on, but slowly and surely people are beginning to see the benefits it can bring to the environment and their pocket.”