Financial Oddity

[thesaint]

A newspaper advertisment tells me that if I have solar panals installed on my roof; my electrical supplier will pay me 41.3p for each unit of electricity I produce.

As far as I can see, the electrical company would soon be bankrupt because they would be buying from me at 41.3p and selling to my non-solar neighbour at the normal rate of 10pence a unit!

I could understand it a bit better if the electrical supplier was also the installer of the panals - and thus in line for a heafty installation profit. However; this is not so.

I expect that there must be some other facts which are not mentioned in the advertisment.

I welcome comments

 

[Bostitcher]

I'm not sure about the price, but it is true that they will pay you if you supply power to the grid. I know a few people that have wind or solar on their houses and put power back into the grid. Keep in mind the power companies are raking in millions and can afford to pay.

 

[thesaint]

Thanks Bosticher.
My research has now revealed the answer. The power company have to pay the owner of the panels about 43p per unit generated. They then charge all their customers a little extra on their bills, thus recovering the expense of these 43 pence's.