The Solar Electric Power Feed-in Tariffs (FITs)
The Feed-In Tariffs (FITs) is a new system of payments introduced by the government that will reward businesses, communities and homeowners alike who install solar photovoltaic (PV) systems or other micro-generation technologies.
The Feed-in Tariffs allow any of us to take an active part in the UK's path toward a low carbon future and be rewarded for it financially with a guaranteed fixed return payments (index linked) for 25 years
The structure of the solar electric power feed in tariffs
1. Generation tariff – You are paid for every unit of renewable electricity you generate whether you use it or not. The rate you are paid varies according to the size of the system and is Retailed Price Index linked for 25 years. This income will also be tax free for households. Businesses however will pay tax on the revenue that is generated.
2. Onsite saving – If you consume the electricity generated on site you avoid paying for grid imported electricity. Households and Businesses will save money in line with the size and yield of the system. Where electricity will only become more expensive in the future there is a high chance that the amount that is saved will grow year on year.
3. Export tariff – The export tariff is set at 3p per kWh. Any excess electricity that one system generates and does not get used on-site will be exported back into the grid granting households and businesses to receive an additional payment. This is the same for all generators and is also index linked for 25 years. Alternatively, you can opt out of the export rate and find a buyer for your electricity on the open market.
The energy saving trust website is a really useful resource for looking into the scheme further and will give you the opportunity to calculate the returns you can expect from any investment in Solar PV.
If you would like any assistance with this give us a call today on 0844 504 13 17 and we will be happy to help you!
