Grants/Incentives
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Feed in Tarrif’s – How do they work ?
They are an excellent scheme brought in by the Government which, from April 2010, means that you will receive from your electricity supplier, a payment of 41.3p per KWH that you generate from you solar PV system. Even if you use all the electricity generated !. Furthermore, you will receive the 41.3p per KWH for a further 25 years!.
This is available to householders and businesses alike. |
A typical example of what you could earn :
On a 3 – 4 bedroom house installed with a 2.5 KWP solar PV system, you could expect to earn around £845 per year from the electricity you have generated.
In addition, you would save around £150 off your electricity bill, therefore meaning you could be receiving an income of around £995 per year, for the next 25 years!
Any income received through your feed in tarrif is also tax free and indexed linked so your feed in tarrif rate will increase with inflation.
You will also benefit further as electricity prices rise which is inevitable.
If you are a commercial/business customer, any installation costs can be 100% offset against tax in the first year. Businesses also benefit as they will use most of the electricity generated throughout the day, therefore cutting the cost of your electricity bill further.
The feed in tarrif rate of 41.3p per KWH is only available until April 2012, after that it will decrease slightly year on year. If you were to install before April 2012 you will receive the rate of 41.3p for the duration of 25 years.
Tariff levels, for technologies installed between 15th July 2009 and 31st March 2012 of most significance to householders
Technology |
Scale |
Tariff level (p/kWh) |
Tariff lifetime (years) |
Solar electricity (PV) |
≤4 kW (retro fit) |
41.3 |
25 |
Solar electricity (PV) |
≤4 kW (new build) |
36.1 |
25 |
Wind |
≤1.5 kW |
34.5 |
20 |
Wind |
>1.5 - 15 kW |
26.7 |
20 |
Micro CHP |
≤2kW |
10.0 |
10 |
Hydroelectricity |
≤15 kW |
19.9 |
20 |
In addition to the feed in tarrif there will be a new ‘renewable heat incentive’ (RHI) which comes into force in April 2011. This will mean you will receive payments for the use of solar thermal panels for water heating, biomass boilers for heating and ground source & air source heat pumps.
Any of these systems installed now will be eligible for the RHI’s once they begin in April 2011. This is another great way for you to save, earn money and help save our planet !!. The RHI is calculated to offer a 12% return on your initial investment. Please visit www.energysavingtrust.org.uk for further information.
If you would like to request a call back regarding installation, please complete the form above and we will get back to you. |
