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From April 1st 2010, the UK Feed-In Tariff comes into effect, making solar panel installation a very attractive investment indeed.
The FiT will apply across England, Scotland and Wales and is designed to incentivise solar panel installation, by offering what is referred to as “clean energy cashback”. Put simply, it means that homes and businesses implementing small scale low carbon energy generation through solar PV panels (or other eligible means) will be paid for the energy they generate. This even applies if the households or businesses use all of the electricity they generate themselves! The rates have also been set so that those generating electricity through solar PV will be paid well above the rate at which utilities companies sell electricity, to account for the fact that solar generated power is more expensive to produce than fossil fuel generated power.
How much you get paid will depend largely upon the type and size of the solar PV technology you use in your home. This table acts as a guide as to the pence per unit a new solar panel installation could earn.
Essentially, the price you will be paid per unit for energy you generate and then use yourself goes up to 41.3p. For energy you generate and then export back to the grid (as opposed to using yourself) it goes up to 44.3 pence per unit. More information about the Feed-In Tariff rates can be found detailed in the table below.
| Size of Solar PV system | Generation Tariff (pence per kWh) Self Used Energy |
Export Tariff (pence per kWh) Exported Energy |
|---|---|---|
| < 4kW (new build) | 36.1 | 39.1 |
| < 4kW (retrofit) | 41.3 | 44.3 |
| 4 - 10kW | 36.1 | 39.1 |
| 10 - 100kW | 31.4 | 34.4 |
| 100kW - 5MW | 29.3 | 32.3 |
| Off Grid Systems | 29.3 | 32.3 |
These rates apply to systems installed between 1st April 2010 and 31st March 2012 and will be paid for a period of 25 years. The payment levels drop for systems installed later than this.
Retrofit: Panels installed on a building that is already occupied.
New Build: Installed on a new building before it is occupied for the first time.
Eligibility for the UK FiT depends upon the date of installation, size of the installation and the technology used.
Even if your system was installed before April 2010, you may still be eligible for the Feed-In Tariff. Any systems installed between 15th July 2009 and 1st April 2010 will be eligible, provided they are registered with Renewable Obligation. Any systems that are registered will receive payments for this period (July 09 - April 2010) under the Renewable Obligation Certificate (ROCs) and will be automatically transferred over to the FiT as of April 2010 and the tariffs outline above will apply.
Any system installed before 15th July 2009 and registered for ROCs will still be eligible for FiTs. However, irrespective of the technology used, a lower rate of 9p/kWh will apply.
Systems installed between April 2010 and 31st March 2012 will be eligible for the rates as outlined above, providing they are registered by an accredited body. Once installation is complete, consumers should contact their supplier to begin receiving payments at the rates detailed above.
The FiTs will apply to all new eligible systems installed. However, the FiT rates will decrease for systems installed after 31st March 2010. There will be a decrease in the FiTs for systems installed from April 2012, a further decrease for those installed after April 2013 with continued cuts each following year.
The idea behind cutting the tariffs from April 2013 is to encourage people to act now. By acting now you will get the best financial return on your solar PV installation. This is an incentive to get more people to make the solar choice before sooner rather than later, assisting in ensuring that the UK meets its carbon emissions reduction targets.
Want to know more about the UK Feed-In Tariff and how you could benefit? Contact Solar Choice today.
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