How does the Feed in Tariff work?
The UK Feed in Tariff was established on the 1st of April 2010 to encourage the uptake of renewable generation of electricity. The Feed in Tariff provides people with an incentive to install solar photovoltaic systems on their roofs. The Feed in Tariff is available for everyone in England, Scotland or Wales.
Under the Feed in Tariff scheme, any one who installs a solar pv system can earn set amount of money for every kWh of electricity they generate dependent on the size of system they have installed. On top of this, you will receive an additional amount of money for every kWh of electricity which is exported to the grid. Once you have had your solar panels installed, you are guaranteed to receive the outlined rate which is inflation linked for 25 years. This can lead to a significant return on investment.
How much can I earn?
The amount of money your solar pv install can earn from the Feed in Tariff is dependent on the irradiance level in your area and the sunshine levels during the year. The further south in the UK you install a solar photovoltaic system, the more earning potential your pv system has. A system on a house in southern parts of England can earn in excess of £1,200 per annum.
On top of the earnings from the Feed in Tariff, most systems will provide households with a significant proportion of their electricity needs during the day. As a result, you can also cut from 15 – 40% of your electricity bill depending on your electricity consumption patterns. As a result, a solar photovoltaic install can provide households with a substantial financial benefit at a time when energy bills are rising every year.
Where can I find more information?
The full Feed in Tariff documentation can be downloaded from the Department for Energy and Climate Change website.