The Feed-In Tariffs (FiTs) are designed to encourage investment in renewable energy. FiTs will be phased out to new applicants as energy prices rise so the scheme favours early adopters who will lock in FiT rates for 20 years from application, as energy prices rise their savings will be ever larger. This page shows how the scheme lets you earn money for the energy you generate and to help you decide if it’s worth it for you.
Its easiest to talk about small installations but larger installations will see generated income scale accordingly. So, let’s say a family installs solar PV panels on the roof of the home. They’ll be able to benefit from the electricity they produce in three distinct ways:
This is a set rate paid to the household for each unit of electricity that the solar panels generate, measured in kilowatt-hours, or kWh. In the case of solar PV this is currently paid at 4.39 pence per kWh (for systems up to 10kW). The owner of the PV panels will receive the generation tariff via their electricity company or an independent FiTs provider (such as Good Energy), whether they use the electricity themselves or not.
Some, but not all, of the household’s electricity demand will be met by the solar panels! How much they save depends on how much electricity they use during the day when there is sunlight and the solar panels are generating. To make the most of this free electricity, think of it as the opposite of the old Economy 7 tariffs. The more electricity used during daylight hours, the lower the household energy bills will be. We have some great products that help you organise your energy usage to take the greatest advantage of the free energy periods as well as battery storage systems to substantially increase your self-consumption, please contact us to find out more.
Any electricity the household generates but doesn’t use is sold to the grid for a fixed rate of 4.85 pence per kWh. At present domestic installations do not need an export meter. Instead, the FiTs provider will assume you are exporting exactly 50% of the total you generate, and pay you accordingly for this.
A quality larger (4kW) domestic system will cost roughly £6,000 to install and can generate around £680 of savings and earnings every year for 20 years through the Feed-in-Tariff. This represents an impressive, government backed profit over the 20 year lifetime of the tariffs. When energy prices go up the saving will be even more. These payments are tax-free and inflation-linked and are guaranteed for 20 years. We know our quality components will last much longer, so the savings will continue well after the system has made you a great return on your investment and the tariffs have finished. Our unbeatable guarantees in this mature and tested technology provide ultimate peace of mind.
With these 3 income mechanisms, energy bill prices set to resume their rise in 2016 and daily reminders in the news of the runaway costs of non-renewable energy generation, there has never been a better time to back sustainable, clean and practical alternatives such as solar.
To qualify for the Feed-in-Tariff your system must be installed by a Microgeneration Certification Scheme (MCS) approved installer (such as ourselves) and your home must also have an valid Energy Performance Certificate (EPC)* with at least a “D” rating. Most houses easily meet the “D” rating, if yours does not initially we help you get there with practical advice.
Once your system is installed we will help you complete all of the application paperwork to submit to your chosen Feed-In Tariff provider as part of the handover service.
For further info on Feed-In Tariffs please visit The Energy Saving Trust.
*We will provide your EPC for free when you install with us.