Feed-in Tariffs

How the Scheme works

The Government’s new Generation Feed-in Tariffs (FiT) are an encouragement for people to switch to renewable technologies in the home, helping the UK to lessen its carbon footprint and meet the 2020 emissions target.

The Scheme will pay you for every unit of electricity you generate with renewable technologies like Solar PV, whether it is used in the home or not (exported).

The payback

From 1st April 2010 and guaranteed for 25 years, this scheme, results in a shorter payback for Solar PV systems, making them an extremely attractive green option for any home. Looking more closely at this, when the capital cost of the system is paid for, everything you generate and receive as pay-back is income!

PV systems registering with the scheme from 12th December 2011 to 31st March 2012 will benefit from:

Any system up to 4kW on a new build or retrofit  =  21p per kW pay-back
Any system 4-10kW new build or retrofitted  =  16.8p per kW pay-back
Any system 10-50kW new build or retrofitted  =   15.2p per kW pay-back
Any system 50-250kW new build or retrofitted  =  12.9p per kW pay-back

If you normally pay 12p per kWh for your electricity, you would effectively get both the PV generated power consumed for free and the FiT. So on a retrofit system up to 4kW this would mean 12p + 21p = 33p per kWh saving!

Any Solar PV system installed after the 15th July 2009 is eligible for this Feed-in Tariff at the above rate, provided the system uses MCS approved equipment and has been fitted by an MCS accredited installer.

Very attractive proposition

A Solar PV system installed under the Renewable Heat Incentive Scheme is guaranteed for 25 years and the financial benefit is transferrable if you decide to sell your home.

To a potential buyer, a house which is generating its own power would be a very attractive proposition, just like having immunity to the OFGEM warning of a possible price increase of up to 25% for fossil fueled energy within the next ten years.