Feed In Tariff

In April 2010 the government will be launching a feed in tariff which will pay for all of the electricity generated onsite regardless of whether or not it is consumed on site. The rate given will be guaranteed for 25 years, therefore no matter what type of building you own you will make money. The minimum figures which have been given for PV systems are as follows:

System Size (kWp)	Proposed Tariff (p/kWh)
< 4 new build	31.0
<4 retrofit	36.5
4-10	31.0
10-100	28.0
100-5000	26.0
Stand-alone	26.0

The figures in the table above have yet to be confirmed and the actual figures will be released in January 2010 it is our belief that these numbers are a minimum and will increase. Keep checking here for updated details as and when they are available.

In addition to this a 5p/kWh sale value of any electricity exported has also been proposed visit the DECC website to find out more.

Feed in tariffs have been successfully implemented across Europe, and have seen PV uptake on a large scale and we anticipate the same response in the UK. However the renewable energy financial consultation also gives a depreciation of 7% a year on the tariff meaning those quick off the mark will be able to lock in to receive the largest tariffs.

Where does the money come from?

If industry lobbying is successful and a tariff level allowing a 10% return on investment is secured then this will cost each household in the UK £1.20/annum. It may not seem like much but collectively it's a huge amount and those who install panels will benefit financially.