What is PV and how does it work?

How Does It Work?

PV refers to photovoltaic (solar) panel systems, which convert sunlight into electricity using layers of semi-conducting materials.  When exposed to natural daylight the panel produces a direct electrical current (DC), which is converted into mains compatible alternating electrical current (AC) by an inverter. 

This AC electricity can then be used to power your premises via your existing wiring or be fed back to the National Grid.

Contrary to popular belief, PV panels work in winter and on cloudy days, although it is fair to say that the higher the daylight intensity, the greater the yield of electricity they will produce. 

What is the Feed in Tariff (FiT) and how does it work?

The Government has mandated that your electricity supplier must pay you for each unit of electricity generated PLUS a further payment for every unit exported to the National Grid. 

These rates are guaranteed for 25 years and are index linked, so you have surety of your income as well as free energy during daylight hours.


If you installed a typical 4kWp solar PV system costing around £15,000 the FiT could generate the following income:

£1418.00         per year tax-free from the generation tariff
£51.00             per year from the export tariff
£412.00           per year from the reduction in current electricity bills
£1881.00       Total income per year

To view a video that explains how the Feed in Tariff works please click here