Feed in Tariffs (FIT's)

On the 1st April 2010, Feed-In-Tariffs (FIT’s) were introduced. Very simply they are a new Government backed measure to make it worth your while to produce renewable electricity.

The aim of FIT’s is to help Home Owners, Housing Associations, Small Businesses and other Community Groups start to make the “big energy shift” to a low carbon economy and contribute to the Governments 2020 Renewable Energy Targets.

Solar Power - First Benefit - The Generation Tariff

You earn a fixed income for every kilowatt hour (kWh) of electricity you generate and use in the property. For example: Retrofit systems of 4 kWp or less, will earn you a generation tariff of 43.3p kWh. New build properties earn a generation tariff of 37.8p. The good news is that these tariffs are index linked and guaranteed for 25 years, and paid whether you use the power you generate or you send it to the electricity grid. Note: If the electricity is generated for domestic consumption, these payments are tax free. Businesses are charged tax at the appropriate rate.

Solar Power - Second Benefit - The Export Tariff

You will also earn an additional bonus payment for every kilowatt hour of electricity you generate and sell back to the grid. A fixed price has been set for this bonus payment in the legislation at 3.1p/kWh you export. Again it is index linked to the retail price index. However, you also have the opportunity to opt out of this fixed price and try to negotiate a better rate with your electricity supplier. Each year you can decide whether to accept the fixed 3p rate or opt out. You can use the following link to find current export tariff prices.

Solar Power - Third Benefit : The energy you buy from your electricity supplier

When you can’t generate enough electricity for your needs, you buy electricity from your utility company at the normal rates. However it will be much less electricity than you currently buy.

The table below outlines the relevant generation tariff for Solar PV installations (from April 1st 2011) and also outlines the period for which the tariff is guaranteed.

Feed-in tariffs are designed so that the average monthly income from your installation will be significantly greater than your monthly loan repayment (with a 25 year loan).

For more information on Feed-in tariffs please contact our sales department.