Feed in Tariff FAQ

Feed-in tariffs explained

In one hour the sun transmits more energy to the earth’s surface than the world uses in a year.The Government has decided that for the next 25 years they will assist homes in investing and recovering this natural resource.

The Feed In Tariff RPI linked was introduced in 2010, qualifying installations will receive income from their electricity supplier based on the amount of electricity they generate and the amount exported to the grid.

The most favourable option is Solar PV panels retro-fitted (4kW or less) because it offers the best return on investment in most cases.The tariff is payable for up to 25 years, and the tax-free payments are usually paid each quarter.

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  • Tariff income: £580
  • export tariff: £36 (based on a deemed export rate of 50%)
  • annual fuel bill savings: £200
  • total: £816 a year, figures are based on an existing building with a system installed between now and March 2014.

Assuming the system costs £4,995 and was bought upfront, the system would take 5 years to pay for itself – and generate £21,150 net profit over 20 years including RPI linking.

Feed In Tariff Scheme From 1st April 2014

  • The new tariff rate for solar PV <4kWp will drop to ??p/kWh with an EPC band D or higher (if band E or less the lower tariff rate has also dropped to 7.1p/kWh).
  • The export tariff rate increases to ??p/kWh for all new solar PV installations.
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