Financial Benefits

The Feed In Tariff Explained

Please note - in light of recent changes to the government feed-in-tariff, systems currently installed and commissioned before 2nd March 2012 may be eligible for the higher feed-in-tariff rate of 43.3p for every kilowatt hour produced (for systems up to 4kWp). The information below relates to the feed-in-tariff at the lower rate, which at present applies to installations from 3rd March 2012 onwards.

In April 2010 the government introduced the Feed In Tariff or ‘energy cash back scheme’ to incentivise people to generate their own electricity. In simple terms, this means that should we install a retrofit Solar PV system at your property (up to 4kWp) you will receive 21 pence per kilowatt produced from your solar panels. This payment is TAX FREE and at present the payment is guaranteed for 25 years.

In addition to the Feed In Tariff payment for generating your own electricity, you will also receive an export payment at a rate of 3 pence per kilowatt hour. This is based on the assumption that 50% of what you generate will be exported to the grid and is calculated by your generation meter reading.

How do I receive the payments?

When we install the Solar PV system we fit a generation meter which measures the kilowatt hours produced during daylight hours, so it is easy to see how much money you are making. In order to claim the payments all you have to do is give a quarterly meter reading to your electricity supplier and they will make the payment directly into your bank account or an alternative bank account nominated by you. This could be a relative such as a child or grandchild. You will also receive a quarterly statement.

Extra Benefits

In addition to receiving direct quarterly payments, you will also be saving a considerable amount on your electricity bill. During daylight hours, the electricity you generate from your Solar PV system will reduce, or eliminate, the need to use electricity from the grid. Most people report that their electricity bills have more than halved since their installation.

We all know that energy costs will rise over the coming years, in fact the latest OFGEM estimates believe that 8.1% per annum is a realistic figure. Therefore if you take into account the increase in energy prices and the fact that the Feed In Tariff and export payments are TAX FREE, then installing Solar PV is one of the best investments you can make.