Thinking of getting a 2nd pv system

tunnel

Hi all, I've had a good look around but can't seem to find the answer to this question.
I currently have a 2kwh system installed and am considering a 2nd system on my garage. Thing is the 2nd system could possibly be a 3kwh system. What i'd like to know is if i have this put in and i then have 2 systems totaling 5kwh,will that affect my current FIT rate of 45p a unit. I'm not bothered if the 2nd install only gets either the 21p or 16.5p rate,I just don't want to affect the higher rate i currently get on my 2kwh system and would stick with only putting another 2kwh on the garage if it did.

Any ideas?

Tunnel

Martyn1981

tunnel wrote: »

Hi all, I've had a good look around but can't seem to find the answer to this question.
I currently have a 2kwh system installed and am considering a 2nd system on my garage. Thing is the 2nd system could possibly be a 3kwh system. What i'd like to know is if i have this put in and i then have 2 systems totaling 5kwh,will that affect my current FIT rate of 45p a unit. I'm not bothered if the 2nd install only gets either the 21p or 16.5p rate,I just don't want to affect the higher rate i currently get on my 2kwh system and would stick with only putting another 2kwh on the garage if it did.

Any ideas?

Tunnel

Hiya Tunnel. The FIT rate on your first system will be safe, however it's capacity (2kWp) will be included when calculating the rate for the second system.

If you install an extra 1.9kWp, then the new total of 3.9kWp will mean the new system gets the 21p tariff.

If you install an extra 3kWp (or even 2.1kWp for arguments sake) then the new install will get the 4 to 10kWp rate of 16.8p.

Remember you will still need an EPC D rating, though the extra points from the existing and proposed install will be included.

Have you spoken to your FIT provider? They will presumably have an extension application form. Also worth checking if they'll require a separate TGM. I think (not sure about this bit) they can ask OFGEM to evaluate the two installs and then appropriate the generation proportionately from a single TGM.

Also (was supposed to be a short answer but I'm thinking of extra issues as I'm typing) will both installs face the same direction, and therefore generate peaks at the same time. If so, you'll need your installer to check that this is OK with the DNO if you're going over 4kWp. Installer should be able to advise on system peaks and whether the inverters will limit output appropriately.

Let me know how it's going as I'm considering an extension myself, but funds and pricing are the deciding factors.

Mart.

tunnel

Thanks martyn,
Glad to hear my existing rate is safe,it would have been a deciding factor for size on the 2nd system if it hadn't been. As for the 2 systems,1st one faces ESE and the 2nd hopefully SSW so peaking at different times.
Price isn't so much the issue its more the ROI i'm bothered about as i'm also looking into having some more panels on one of my rental properties,roof is 8 degrees west of south so ideal for panels. I've been following the thread about the cost of 3kwh with interest as that would probably be the size i can get on it,any ideas where i stand on tax with the payments(before anyone asks,everything is above board with the rentals) as they're supposed to be tax free aren't they? Do they have to be declared?Can see this as a bit of a grey area.

Tunnel

Martyn1981

Tax situation should be interesting. They're tax free (well the income is tax free) on a sensible sized system on your home property. The rental property income, will I assume, be taxable. At least the income will fall into the income pot for the property on which you will be taxed.

Presumably, you will be able to write some of it off as losses, via depreciation? 100% out of my depth here! How does a rental property work, is it simply all incomes, less all costs leaving a taxable profit?

Will you be putting the rent up for the free leccy!!!!!

Mart.

tunnel

How does a rental property work, is it simply all incomes, less all costs
leaving a taxable profit

Pretty much so

Will you be putting the rent up for the free leccy!!!!!

Would be nice but don't get keys for this property till next week so not set any rent yet:sad:,think i'll set it at market value then hope it attracts a good tenant.
I'm gonna head over to the tax forum and see if i can find anything out though about the tax free status for FIT payments

Tunnel