|
• How Solar PV Works
• Guarantees
• Is Your Home Suitable
• How Feed Tariffs Work
• How Much Does It Cost
• Site Visit
• Case Studies
• Home
How Feed-In Tariffs Work
The feed-in tariff scheme rewards you for the amount of energy your PV system generates, regardless of whether you consume the electricity or not. You are also paid for any electricity exported. All income generated will be completely tax free.
This is a government-backed policy, introduced to encourage householders to install solar PV systems to generate their own electricity. It has cross-party support and was reaffirmed in the recent Comprehensive Spending Review.
Contact us for your free survey from a solar PV system designer based in your area.
Householders will earn or save:
|
|
• 41.3p for each kWh of electricity generated by your system, whether you use it or not. This is the generation tariff.
• 13p for each kWh used to power your lights and appliances, since you will not have to buy that electricity from your energy supplier. So in effect, the total benefit to you is 54.3p.
• 3p per kWh for any electricity not used in the home and exported to the grid; the export tariff.
|
Any income generated will be completely tax-free, and the entire feed-in tariff scheme is guaranteed for 25 years.
Each year the feed-in tariff, and the money you will earn, will increase by the Retail Price Index (RPI). These tariffs are only guaranteed if you install your solar PV system before April 2012, so there is a real incentive to install your system now. The feed-in tariff (both generation and export tariff) is guaranteed for 25 years.
An example of a typical house
How we calculated the figures
Energy output is assumed at a UK average of 850 kWh per kWp of installed PV, with panels orientated south on a 30 degree pitch roof, with little or no overshading. A current average UK electricity rate of 13p/kWh is assumed and energy inflation is set at 6% a year over the 25 years, which is consistent with the last 10 years (BERR, June 2009). Annual household electricity demand is set at 3,300 kWh and 50% of electricity generated by the system is exported. RPI is set at 3% and raises the feed in tariffs only.
The householder receives 3 separate benefits
Generation tariff: A fixed price for each unit of electricity generated by the system, whether used in the home, or exported. This price is guaranteed for 25 years and will rise with the rate of inflation each year. In this example this provides an income of £723 a year.
Export tariff: A fixed price for each unit of electricity generated by the system that is exported to the grid. This price is guaranteed for 25 years and again will rise with the rate of inflation each year. In this example, this provides an additional income of £41 a year.
Avoided costs: The savings from reducing the import of electricity by using the electricity generated by the solar PV system. This provides lower bills and the additional benefit of being partially protected from future price rises in electricity. In this example, this provides a saving of £116 a year.
Get a free solar PV survey
Contact us today for a free, no obligation site visit from one of our system designers, who will carry out a PV assessment of your home and talk to you about what system is best suited for you.
|
|
