The Feed In Tariff
The feed-in tariff is an index linked tax free rate per unit of electricity produced by your Solar PV system. This is a Government backed scheme introduced on the 1st April 2010. It will pay you a tax free sum of 21p (as of April 1st 2011) for each unit (kWh) of electricity generated and is guaranteed for 25 years. It’s applicable to all systems under 4kW installed before 31st March 2012.
Any surplus energy that is not used is automatically exported to the national grid for a minimum rate of 3p per kWh, although this can vary depending on your electricity supplier.
Having solar panels doesn’t mean you automatically benefit by any government incentives. To receive the government feed in tariff the installation has to be carried out, registered and certified by a MCS accredited installer such as fp solar.
Solar is still a fantastic investment! 11% returns available tax free, inflation linked!
How are the returns still this high?
The financial benefits for this work out at:
(1) Free energy
Total savings and income
Don't miss out on the solar deal!
More stringent requirements will be introduced on 1st April 2012
The government plans to introduce minimum energy efficiency requirements for all houses to be able to install solar PV - this will be an EPC rating of "C" or higher. For some properties this could be very expensive, or even practically impossible.
Further cuts could be coming