Businesses are under increasing pressure to demonstrate that they are taking action to reduce their carbon footprint and solar PV is one way to help achieve this. A well-fitted and positioned solar PV system can also provide a great return on investment and once fitted, solar PV is cheap and easy to maintain. Businesses are also be eligible to receive tax free payments under the Feed-in Tariff scheme (FIT).
Feed-in Tariffs (FITs) were introduced in the UK in April 2010 and allow businesses with a renewable energy source that produces under 5mw in capacity to be paid for the electricity they generate, even if the electricity generated is not used by their company. There are two types of payments; the generation tariff which pays a fixed amount according to the type and size of renewable energy installed and the export tariff where unused electricity is sold to the National Grid.
FIT rates are set by the date of installation and return is guaranteed at the same index-linked rate for 20 years but this reduces every three months for new applicants so it makes financial sense to sign up as quickly as possible. The scheme is being administered by Ofgem. For more information visit their website www.ofgem.gov.uk/e-serve/RHI.