Feed in Tariffs
- Under the “Feed in Tariffs” the Government will GUARANTEE to pay you a premium amount for the electricity you generate – whether you use it or not!
- An average PV system of 3kWp could produce as much as £541 in “income” from the Feed in Tariffs and a further £194 in savings from free electricity*
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:
21.0p/kWh* for small solar photovoltaic systems up to 4kW
16.8p/kWh* for systems up to 10kW.
On top of this there is 3.1p/kWh for each kWh that you export to the grid
*Assumes Feed in Tariffs of £0.21 per kWh or £0.168 proposed by the Department of Energy & Climate Change (which is current at time of going to press, but subject to further consultation) 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 £0.031 per kWh on top of the Feed in Tariff.
Proposed Tariff levels
| Technology | Scale | Tariff level (p/kWh) | Tariff lifetime (years) |
| Solar PV | ≤4 kW | 21 | 25 |
| Solar PV | 4-10 kW | 16.8 | 25 |
| Solar PV | 10-50 kW | 15.2 | 25 |
Tariff levels vary depending on the scale of the installation. The tariff levels shown in the table above apply to installations completed from 12th December 2011 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
Feed in Tariffs
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