Photovoltaic solar panel system changes sunlight into energy using silicon and other photovoltaic cells. The government introduced the feed-in tariffs on April 1, 2010 to encourage the use of renewable resources among its residents. The FITs scheme requires electricity providers to pay consumers a fixed rate for every electricity unit they produce even if they do not use the electricity or use it solely for their needs.
For consumers the bigger question is how long will I be able to claim FITs for my PV solar panel system? The day the PV solar technology is deemed eligible to receive FIT payments is referred to as eligibility date. The date of eligibility can either be the date the system is commissioned or the day the FITs licensee is given an application for accreditation of MCS and the registration.
In order to be eligible for the FITs payments, the consumer must use installations that has been certified by Microgeneration Certification Scheme and use the MSC-certified solar PV panels. When the PV technology is installed, the installer will provide the consumer with a FIT eligibility certificate. You will need to show this certificate to the energy supplier as proof of the installation.
FITs payments are guaranteed for 25 years. In order for you to profit on your investments, you need to receive payment for several years to recoup the total PV system costs. How soon you can get a return of investment will depend on the costs of the PV system.
The typical amount of time for the return of investments will be around 7 to 10 years. After 10 years, the PV consumer will be able to make a profit. The return of investment rate is pegged at 8 percent.
Due to the high percentage of return plus the guarantee of 25 years continuous income make the PV system a great investment alternative for investors. This does not include, of course, its many environment benefits. The income earned is also tax free for homeowners.