In the UK you are offered a financial incentive as a homeowner or business for installing Solar PV panels, this is called the Feed In Tariff (FIT).
Feed in Tariff (FIT) is a scheme aimed at increasing the installation of renewable generation in the UK to help deliver the UK’s 2020 renewable energy targets.
The scheme currently rewards investors by:
- Up to March 2012 – paying a fixed rate of 21p per kilowatt hour (kWh) generated and has been designed to increase in line with inflation for the next 25 years.
- After march 2012 –this figure is likely to be reduced further, plus your property will have to be energy efficient to grade C or above – less than 10% of UK houses meet this level today!
Every unit of excess electricity produced by your PV system is eligible for the export tariff which pays an extra 3.1p per kWh for electricity you export to the grid. Currently there is no way to measure this, so they assume that you use 50% of what you generate and pay you for the rest.
There is a chance to make savings on your daytime electricity bills by using your own power. e.g. running the washing machine, dish washer or immersion to heat your hot water cylinder.
The FIT scheme is a TAX FREE investment on which you can benefit from a return of 7-10% which far out performs any other investment opportunities available through other financial organisations.
Our consultants are happy to discuss any questions you may have about this scheme.
To read more about the feed in tariff and for up to date information about how much you might get paid visit the Energy Saving Trust website.