Feed-in Tariff

 

The Feed-in Tariff (FIT) is the name given to the government backed financial incentive for the microgeneration of electricity. As well as being good for the environment, solar PV is now an excellent investment opportunity for your home.

The Facts

 

• You get paid for how much electricity you generate, even if you use it yourself

 

• Electricity you do not use is exported back to the national grid and you get paid an additional ‘export tariff’ for it.

• You will save money on your bills as you will not have to buy as much electricity from your regular supplier

 

• FIT payments are government-backed, index-linked, tax-free and guaranteed for 25 years

 

The Feed-in Tariff could be more accurately described as a ‘Generation Tariff’. This is because the FIT is payable on every kWh which your system produces, regardless of whether you use it or not.

Feed-in Tariffs are available for PV installation in England, Scotland and Wales. The average roof of a semi detached house may fit somewhere between 9 and 12 panels giving between 2.1kWp and 2.82 kWp. Feed-in Tariffs can be earned by individuals, companies or groups and solar PV can be normally be installed on roofs almost anywhere; that means houses, community centres, schools, churches, sports halls or workplaces.

Bearing in mind that the average price for electricity from your supplier is approximately 12p per kWh, see the Feed-in Tariff rates in the table below. These were recently increased in April 2011 in line with inflation.

To get an idea, a 2.82kWp system could yield over 2400 kWh in an average year which would mean over £1200* annually in Feed-in Tariff payments, not to mention the savings made from not buying that amount of electricity from a power company. This payment is guaranteed to you for 25 years, provided you supply regular meter readings, so it is clear to see how the PV panels could pay for themselves in 10-12 years, or even quicker if the price of electricity continues to rise.

If you would like to discuss this further, call our friendly Bristol office on 08456 718441 and you can book an appointment for a free, no-obligation survey. If you prefer, you can contact us online using our form.

From the 12th December 2011, the government have announced that the Feed in Tariff rates will change. This will be confirmed following the consultation which will close on the 23rd December.

The proposed new PV Feed-in Tariff rates are as follows:

Solar PV (4kW or less, retrofit)	21p per kWh
Solar PV (4kW or less, new build)	21p per kWh
Solar PV (4kW – 10kW)	16.8p per kWh
Solar PV (10kW – 50kW)	15.2p per kWh
Solar PV (50kW – 100kW)	12.9p per kWh
Solar PV (100kW – 150kW)	12.9p per kWh
Solar PV (150kW – 250kW)	12.9p per kWh
Solar PV (250kW – 5MW)	8.5p per kWh
Solar PV (standalone)	8.5p per kWh

 

* The performance of solar PV systems is impossible to predict with certainty due to the variability in the amount of solar radiation (sunlight) from location to location and from year to year. This estimate is based on the Government’s Standard Assessment Procedure for energy rating of buildings (SAP) and is given as guidance only. It should not be considered as a guarantee of performance.