Feed In Tariff
What is happening with Solar Energy?
The ‘Feed In Tariff’ or ‘Clean Energy Cashback Scheme’, is a newly-introduced, government-backed 20 year fixed term payment scheme to homeowners and businesses that can generate their own renewable energy.
Payments are made in 2 ways:
Up to 4.5p per unit is paid simply for making the Solar energy, whether you use it or not.
Additional payment for any excess energy you produce and sell back to the grid for 4.77p per unit.
In addition to this, you are likely to see a huge reduction in your energy bills because you are supplying your own electricity.
Why is it happening?
The UK has signed the same treaty that was so successful in turning Germany and other European nations into advanced renewable energy generators.
To help in meeting the UK’s binding commitment to having 15% renewable energy output by 2020, the UK government has passed an a Act of Parliament to run these financial incentives to the public and businesses who can play a vital role in achieving this.
The Act of Parliament obligates energy companies to use revenues gained through Climate Change Levies and other energy bill taxes to pay the generation tariffs to the owners of Solar PV systems.
Solar PV technology is now so advanced that it operates on daylight as opposed to direct sunlight alone. This has made Solar PV a practical investment in the UK for the first time.
Under the feed in tariff, the average UK house can generate enough electricity to earn a £700 annual income from Solar as well as savings of around £250 on their energy bill; all of this from an investment of only around £6k-£8k giving an annual tax free return of well over 10%.
Where PV systems can really yield huge returns is within the commercial or non-domestic sector, where larger roof spaces and high daytime energy demands make the returns on investment even more attractive. Visit our Commercial Solar Panels page to find out more.
A large PV system can typically earn in excess of £2,000,000 in its lifetime in income and savings, providing a huge return on the initial capital investment.
This means whatever your roof size, large or small, you can achieve a highly attractive level of return.
It’s not just Solar PV which can generate a tax-free income, see our Other Technologies page for all the renewable energy technology types which can generate an income, as well as substantial energy savings.
Feed In Tariff Examples
Some examples of PV Investment Returns showing how to reduce energy costs & improve your energy efficiency and carbon footprint…
Video Case Study
Why install Solar panels? How much money can you save with Solar panels? This video shows how Solar PV could work for you…
Commercial Solar Panels
Reduce your business overheads and generate an additional income with a Solar PV system. Discover how much your company could save…