The Feed-in Tariff scheme (FiT) is a Government programme designed to encourage the use of small-scale renewable and low-carbon electricity generation technologies including 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.
The FiT is currently scheduled to be open to new installations until 2019 unless the fund has been deployed before that date.
If the installation meets the eligibility criteria, FiT offers the following three benefits:
: the energy supplier pays a set rate for each unit (or kWh) of electricity generated. Once the system has been registered, the tariff levels are guaranteed for up to 20 years and are index-linked.
: this is an additional bonus payment of 4.85p/kWh for each unit of electricity exported back into the electricity grid. This is paid for by the energy supplier
: By using the generated electricity to power appliances, significant savings on electricity bills will be made. For every unit of generated electricity used, those eligible for FiT can expect to save 10-15p/unit which would otherwise be paid to the energy supplier. The amount saved will vary on electricity usage.
The table below details the Generation Tariff based on different installation sizes and types. The amounts shown will be paid for every unit of electricity generated by the solar PV system and does not encompass the additional payments received under the Export Tariff.
|Description||From 15th January 2016 Standard Tariff (p/kWh)|
|10 – 50kW||4.59|
|50 – 250kW||2.7|
|250 – 1000kW||2.27|
If you’re interested in the domestic Feed-In Tariff scheme, you can estimate the income you could receive with the Energy Saving Trust’s Solar Energy Calculator.
With an average return on investment of around 8-9% based on using 50% of generated power, click here to discover how else Solar PV could benefit you and your property.
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