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LATEST FEED-IN TARIFF NEWS
Thursday 9th February 2012: The Government has announced planned changes to the Solar PV Feed-in Tariff and installation criteria. Install by 1st April 2012 and avoid the requirement to ensure your property has an Energy Performance Criteria rating of at least ‘D’.
Read more about the Energy Performance Criteria.
SOLAR PV FEED IN TARIFFS
Solar Feed in Tariffs are payments made by Energy companies to anyone who generates their own electricity, including home owners, public sector bodies, charities and businesses.- Income from Generating and Exporting electricity.
- Tax free, index linked payments for 25 years.
- Savings also made on bills by using electricity.
- 7.3% to 9.3% return on your investment.
- A 2kWp system earns over £500 per year.
FEED IN TARIFFS
A Feed in Tariff of 21p per unit generated, regardless of whether it is used or not is paid for systems under 4kWp. An extra 3.1p is paid for every kWh not used and exported to the grid. Savings are also made on energy bills. A typical system can earn over £500 giving over 7% return.- Payments made by Energy suppliers.
- Pays 21p per unit generated.
- Save on bills by using the electricity.
- Extra 3.1p per unit exported to grid.
- Earns & saves over £500 per year.
- Up to 9.3% return reduces payback time.
GOVERNMENT GRANTS
Government grant funding to assist with the installation cost of Solar PV panels ended in February 2010. They were replaced with a better system known as Feed In Tariffs (FITs). The old grant scheme only covered up to 30% of the installation cost whereas Feed in Tariffs ensure that the cost is always recovered.- Grants ended in February 2010.
- Feed in Tariffs stared in April 2010.
- FITs is a much better system.
- Old grants only covered 30% of cost.
- FITs ensure all investement recovered.
- Typically within 10 to 13 years.
HOW MUCH CAN I EARN & SAVE WITH FEED IN TARIFFS?
There are three ways to earn and save money from Solar PV Feed In Tariffs. The Generation Tariff pays you for each unit or kWh of electricity produced. Most domestic systems are in the region of 1kWp to 4kWp in size, which relates to a payment of 21p per kWh generarted.
An additional 3.1p per kWh is paid for each unit exported back to the electricity grid. There are also substantial savings to be made on your energy bills.
A typical 2kWp system costing £7,000 can earn and save:
Return on Investment = 7.3%
A typical 4kWp system costing £11,000 can earn and save:
Return on Investment = 9.3%
Please try entering some examples on our Solar PV Feed in Tariff Calculator.
An additional 3.1p per kWh is paid for each unit exported back to the electricity grid. There are also substantial savings to be made on your energy bills.
Earnings & Savings Examples
A typical 2kWp system costing £7,000 can earn and save:
- Generation Tariff = £367 per. year
- Export Tariff = £27 per. year
- Electricity Bill Savings = £121 per. year
Return on Investment = 7.3%
A typical 4kWp system costing £11,000 can earn and save:
- Generation Tariff = £730 per. year
- Export Tariff = £54 per. year
- Electricity Bill Savings = £242 per. year
Return on Investment = 9.3%
Please try entering some examples on our Solar PV Feed in Tariff Calculator.
