What is the feed in tariff scheme for PV solar panel installation?

April 2010 saw the launch of the feed-in-tariff for renewable small scale energy generation for householders in England, Wales and Scotland.

The feed in tariff scheme enables compulsory payments for generation paid from your energy company, these rates are index linked and for solar electricity guaranteed for 25 years.

About the Feed in tariff scheme
This scheme legislated for by government will guarantee a minimum payment for all the electricity generated by your solar panel installation, there is a separate export tariff for surplus electricity that is exported back to the national grid. All these payments are in addition to the savings you can make by generating your own clean, green and free electricity from an installation on a household roof.

Installing solar panels on your roof will save you money by lowering your electricity bills by generating a proportion of your electricity needs by local, green micro-generation. The feed-in-tariff has been designed to allow householders to use a loan to pay for the solar panel installation, the payments from the feed-in-tariff would easily cover the cost of the repayments over a 25 year term. Over the 25 years the householder would gain free green electricity, a green technology that increases the value of your home and the cash difference between the loan repayments and the income from the feed-in-tariff payment.

Scheme Review The government have recently reviewed the number of large scale solar farms and are not likely to allow many new installations in the future, this is to ensure that the feed-in-tariff scheme is available for and encourages small scale residential projects. The scheme is guaranteed for new entrants and will ensure the consumer receives an attractive feed-in-tariff rate for years to come.

Benefits of the FIT Solar panel installations that are eligible to receive the FIT benefit you in 3 ways:

  • Generation tariff - a fixed rate paid by the energy supplier for each unit (or kWh) of electricity you generate from your solar panels. For customers that install before April 2012 your rate is guaranteed for 25 years and index linked.
  • Export tariff - you will receive a further 3.1p/kWh from your energy supplier for each unit you export back to the electricity grid, that is when it isn't used on site. The export tariff is based on deemed export of 50% of total generation.
  • Energy bill savings - you will be making savings on your electricity bills, because generating clean green electricity to power your household appliances means you don't have to buy as much electricity from your energy supplier. The amount you save will vary depending how much of the electricity you use at home.

Deemed Export Solar panel installations are deemed (assumed) to export 50% of the energy generated by the rooftop array, unless a smart meter (or export meter) is fitted there is no way to measure the electricity returned to the grid, therefore the export tariff is paid irrespective of how much electricity is exported.

The UK feed-in-tariff (FIT) began in April 2010, also known as the Clean Energy Cash Back Scheme. The DECC (Department of Energy and Climate Change) have legislated for a 25 year feed-in-tariff from domestic installations of solar PV panel systems. Fitting solar electricity could provide over a 10% return on your investment. Installing solar panels is an ideal way to offset the rising price of energy, due to the lack of harmful emissions solar power is a great low carbon alternative. The feed-in-tariff provides a welcome scheme to ensure all householders have access to green, low carbon, small scale, local energy generation.

PV install would be happy to answer questions you may have about the feed-in-tariff and solar electricity please contact us using the online form or call now on 01722 663 633