Feed in Tariff

How it works
Whilst most people traditionally invest in renewables purely for environmental reasons, the Government’s new Feed in Tariff legislation now adds a massive financial incentive for you to invest in your own electricity-generation system at home.

The Feed in Tariff guarantees to pay you at above market rate for all the electricity you generate at your home or place of work, and with all payments effectively inflation-proofed through being index-linked to the Retail Price Index and guaranteed in law for up to 25-years, investing in your own solar PV system has never made so much sense!

What it pays
Depending on the size and type of solar PV system you have installed, you will be paid up to 41.3 pence for every kilowatt of energy you generate, even if you then use this electricity yourself!

On top of this you’ll stand to receive an additional 3 pence for every kilowatt you export back into the national grid too!

Not bad, particularly when you consider that you are probably paying around 11 pence/kW to buy electricity yourself!

Plus of course, because you are now generating your own electricity on site, you reduce the amount of power you have to buy from the grid, further improving your finances!

And that’s not to mention the added value to your property in having your own on-site microgeneration system should you come to sell!

Payback on investment
People are often interested about the payback period on their initial investment on solar systems, so what would it be now when taking account of the Feed in Tariff?

Well, according to the Government, the Tariff rates have been set to earn up to 8% p/a, meaning that the capital costs should be earned back during the 25 year tariff period two or three times over.

But let’s look at an example;

Mr Smith has a nice 4-bedroomed house in Berkshire, and decided to have a solar photovoltaic system installed onto its un-shaded south-facing roof. The fully installed cost of which was £12,500 inclusive of VAT.

The 12-panel system covers about 15m² of his roof and has a peak output of 2.4 kilowatts, equivalent to 40% of his household’s annual electricity needs.

At the tariff rate of 43.1 pence per kW, his system generated enough electricity to earn him £846 this year.

Plus, with the system of course also generating whilst he’s been out of the house at work during the week, he has managed to earn a further £29 for exporting this surplus energy to the grid.

Finally, Mr Smith is also happy to have saved another £108 from his electricity bills this year due to reducing his reliance on bought-in energy from the grid.

Resulting in a total of £983 combined income and savings for the year for
Mr Smith. Mr Smith is a happy customer! Would you like to be too?

Please contact us today to receive your own personal illustration and quotation!

Feed In Tariff – Solar PV rates
SCALE OF SYSTEM	YEAR 1	YEAR 2	YEAR 3	DURATION
Up to 4 kW (retrofit)	£0.413	£0.413	£0.378	25 years
Up to 4 kW (new build)	£0.361	£0.361	£0.33	25 years
Between 4 - 10 kW	£0.361	£0.361	£0.33	25 years
Between 10 - 100 kW	£0.314	£0.314	£0.287	25 years
Between 100 kW – 5MW	£0.293	£0.293	£0.268	25 years