UK Feed-in Tariffs Launched April 2010
The UK Government launched of a Feed-in Tariff (FIT) scheme from April 2010. FIT's pay the owners of renewable energy systems a fixed, guaranteed price for every kWh (unit) of energy generated.
Eligible Technologies
Systems installed after 15th July 2009 will qualify. All the renewable technologies generating electricity are covered (Technologies generating heat are covered by RHI’s).
Tariffs
The starting price paid per kWh is fixed and guaranteed, but does vary depending on the technology and the size of the system. Each year, for new installations, the starting value of the FIT reduces. Once registered the tariff remains for 20 years (25 years for the first registrations) and is increased by inflation each year. It is free of tax. The values for the tariffs for the technologies and scales most likely to be used in a domestic situation are shown below.
Tariff levels (from October 2015)
Solar PV ≤4 kW peak rated (retrofit) 12.92p/kWh
Wind 1.5kW - 15kW rated 14.45p/kWh
In addition it is assumed that 50% of the electricity will be exported and is eligible for an export payment of 4.77p/kWh.
Each kW of peak rated PV should produce around 840kWh in a year. Each kW will require 4 panels and occupy an area of 6.8 square meters. (approx 3,4m by 2m)
Although the tariff level for new starters are reduced quite regularly, it should provide approximately the same % return on investment because of the falling price of the panels, although the total income will be less.
Demonstration of the possible pay back from FIT’s for a Solar PV system June 2014
System Size 2.3kW peak
Potential price £3,500 - £5,000
Anticipated Output/year 1,940 kWh
Value of FIT /year £251
Value of sales /year £47
Estimated value of annual savings £64
Payback years 9.6 - 13.8
Feed in Tariffs can be registered with any of the big six energy companies, but is usually most convenient to use whoever supplies your electricity. (Don't move the FIT when changing suppliers, there's no need and a danger you FIT rate would be less). Payments are usually made quarterly. It is not possible for energy companies to just charge for the difference between what you use and what you generate, they are required to settle each part separately.
The UK Government launched of a Feed-in Tariff (FIT) scheme from April 2010. FIT's pay the owners of renewable energy systems a fixed, guaranteed price for every kWh (unit) of energy generated.
Eligible Technologies
Systems installed after 15th July 2009 will qualify. All the renewable technologies generating electricity are covered (Technologies generating heat are covered by RHI’s).
Tariffs
The starting price paid per kWh is fixed and guaranteed, but does vary depending on the technology and the size of the system. Each year, for new installations, the starting value of the FIT reduces. Once registered the tariff remains for 20 years (25 years for the first registrations) and is increased by inflation each year. It is free of tax. The values for the tariffs for the technologies and scales most likely to be used in a domestic situation are shown below.
Tariff levels (from October 2015)
Solar PV ≤4 kW peak rated (retrofit) 12.92p/kWh
Wind 1.5kW - 15kW rated 14.45p/kWh
In addition it is assumed that 50% of the electricity will be exported and is eligible for an export payment of 4.77p/kWh.
Each kW of peak rated PV should produce around 840kWh in a year. Each kW will require 4 panels and occupy an area of 6.8 square meters. (approx 3,4m by 2m)
Although the tariff level for new starters are reduced quite regularly, it should provide approximately the same % return on investment because of the falling price of the panels, although the total income will be less.
Demonstration of the possible pay back from FIT’s for a Solar PV system June 2014
System Size 2.3kW peak
Potential price £3,500 - £5,000
Anticipated Output/year 1,940 kWh
Value of FIT /year £251
Value of sales /year £47
Estimated value of annual savings £64
Payback years 9.6 - 13.8
Feed in Tariffs can be registered with any of the big six energy companies, but is usually most convenient to use whoever supplies your electricity. (Don't move the FIT when changing suppliers, there's no need and a danger you FIT rate would be less). Payments are usually made quarterly. It is not possible for energy companies to just charge for the difference between what you use and what you generate, they are required to settle each part separately.