The Government introduced the Feed-in Tariff (FiT) to encourage the use of solar microgeneration. Under the FiT, anyone who installs an eligible, MCS Accredited, Solar PV system will receive a guaranteed fixed payment for all the electricity they generate, including what they use, for 20 years.
Despite media negativity about cuts to tariff levels, we have found that the Return on Investment (ROI) has increased since the early years of higher tariffs. This is becuase the global demand for solar has significantly reduced the up front installation costs. As such, even though the tariff rates are lower, the ROI is a very healthy 8-12%.
|Description||1st October 2013 – 1st January 2014 Standard Tariff (p/kWh)||1st January 2014 – 1st April 2014 Standard Tariff (p/kWh)|
|<4kW New Build||14.90||14.90|
|<4kW Retro Build||14.90||14.90|
|4 – 10kW||13.50||13.50|
|10 – 50kW||12.57||12.57|
|50 – 100kW||11.10||10.71|
|100 – 150kW||11.10||10.71|
|150 – 250kW||10.62||10.25|
|250kW – 5MW||6.85||6.61|
• The FiT represents the payment made for GENERATING electricity. . If you don’t use it all you will be paid an additional Export Tariff for anything you send back to the national grid.
• Solar PV will provide a very healthy return on your investment, .
• The payment for what you generate is and so increases annually, .
• The FiT payment is , (although paid for and administered by the energy companies), making the FiT one of the most secure and reliable investments around.
• In addition to being paid via the Generation and Export Tariffs, you can also expect a significant element. For every unit of your free electricity you use, you will save the 12-15p / unit you would otherwise pay to a big energy company.
• Most installations are expected to , leaving 10+ years of “in pocket” return on your investment.
• With global demand and and cuts to FiTs helping drive down initial costs, .
Feed-in-Tariff levels vary depending on the scale of the installation. The table above details the Generation Tariff based on different installation sizes and types. The amounts shown will be paid for every unit of electricity your PV system generates, and does not encompass the additional payments under the Export Tariff.
We recommend that anyone thinking of PV contact us as soon as possible to maximize your return on investment, though strong returns will still be available after the rates currently confirmed as degression is expected to be minimal and installation costs continue to come down.
Degression is an element of the FiT Scheme whereby tariffs levels for new installations are owered over time. Degression of FiT Tariffs only applies to new installations, never to existing systems. Once signed up, the rate you receive at installation stays the same for the life of your FiT Account with annual upward adjustments in line with RPI.
All Generation and Export tariffs are linked to the Retail Price Index (RPI) which ensures that each year they follow the rate of inflation. The most recent adjustment in rate came into effect April, 2013.