Feed in Tariffs
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Under the new “Feed in Tariffs” from April 2010 the Government will GUARANTEE to pay you a premium amount for the electricity you generate – whether you use it or not!
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An average PV system of 2kWp could produce as much as £646 in “income” from the Feed in Tariffs and a further £240 in savings*
The feed-in tariff system is designed as an incentive for home owners and building managers to move away from conventional fossil fuels to renewable energy sources. In simple terms it is government legislation which guarantees a fixed, premium rate for renewable electricity generated – even if it is used in the building!
Under this new tariff you do not have to sell the electricity produced by your solar power system in order to get paid for it – and you will be paid extra for any excess electricity that you do export.
The Tariff
The UK government is committed to reducing its carbon emissions through the adoption of renewable energy sources, particularly in regards to the generation of power in order to combat climate change.
Feed-in tariff legislation fixes an above market rate for utility companies to buy electricity from homeowners who produce renewable energy with a solar PV system. It is this fixed tariff which makes renewable energy an attractive prospect as it guarantees a return over a long period and has been highly successful where it has been implemented across Europe. Germany for example now produces over 14 per cent of its energy from renewable sources, something which has been attributed to the generous and comprehensive feed-in tariff system implemented by the German government.
How much could I get?
The UK Government has now announced illustrative feed in tariffs for photovoltaic solar panels:
41.3p/kWh for small solar photovoltaic systems up to 4kW (36.1p/kWh for new build)
36.1p/kWh for systems up to 10kW.
On top of this there is 3p/kWh for each kWh that you export to the grid
Payments will begin on 1st April 2010.
*Assumes Feed in Tariffs of £0.413 per kWh announced by the Department of Energy & Climate Change (DECC) in July 2009 and electricity cost of £0.15 per kWh; all electricity is used. If electricity is sold back to the grid or energy company, it will generate £0.03 per kWh on top of the Feed in Tariff
Tariff levels
| Technology | Scale | Tariff level (p/kWh) | Tariff lifetime (years) |
| Solar PV retro-fit | ≤4 kW | 41.3 | 25 |
| Solar PV new build | ≤4 kW | 36.1 | 25 |
| Solar PV | 4-10 kW | 36.1 | 25 |
Tariff levels vary depending on the scale of the installation. The tariff levels shown in the table above apply to installations completed from 15th July 2009 to 31st March 2012 for the lifetime of those installations. After this date, the rates decrease each year for new entrants into the scheme. All generation tariff and export tariffs will be linked to the Retail Price Index (RPI) which ensures they rise with inflation.
Example of how Feed in Tariffs work
