Feed In Tariffs

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 Solar PV, Solar Roof Tiles

The Feed in Tariff Explained for Solar PV

The Government introduced the Feed in Tariff (FIT) scheme on April 1st 2010 to reward adopters of renewable energy generation systems with cash for every unit of electricity produced for twenty-five years. The homeowner also receives a further 3p per KWH for every unit they produce which is exported to the National Grid as part of their ‘Export Tariff’.

Currently the Government is in a legal dispute over the rate of the Feed in Tariff. Homeowners installing a Solar PV system smaller than 4KW on their roof will potentially receive 41.3p per KWH produced as their ‘Generation Tariff’ until 3^rd March 2012. However they may potentially receive 21p per KWH produced if the Government wins their legal case. Current indications suggest that installations from 3^rd March 2012 will receive a Feed in Tariff rate of 21p per KWH produced.

For a typical property the Feed in Tariff will result in a return of:

• Tariff rate of 43.3p = return of over £40,000 over 25 years and a payback period of 5 years
• Tariff rate of 21p = return of over £22,000 over 25 years and a payback period of 8 years

Calculation is based on S.A.P. 2009, 35° south facing with no shading

When introduced, the Government confirmed that FIT payments would be linked to the Retail Price Index (RPI) and therefore susceptible to change year on year.