Solar Feed-in Tariffs Explained
Reduce your electricity and heating bills with Solar Power and Solar Hot Water
The feed-in tariff obligates utility companies to pay consumers with renewable energy systems a set rate for the unit of electricity generated by their system.
The Rate for retrofit PV System is 21p for pv systems are for a term of 25 years and the income is tax free. The rates will also be index-linked for inflation. Any surplus electricity exported back to the grid can be sold for a minimum of 3.1p per kWh.
Part of the buying decision may be based on the payback of the cost of the system. The payback period will be substantially influenced by future electricity prices, which are universally expected to rise at increasing rates in the future. For example, between May 2006 and June 2008, single rate electricity prices for the first 125KwH used rose on average 64%, and for subsequent consumption on average 30% (based on rates from N-Power, Scottish Power, Powergen, Southern Electric, Northern, Swalec, Yorkshire Power, Eastern).
Economic Example
3.84Kw PV System
| Income from export | £52 |
| Estimated annual electricity saving: | £88 |
| Estimated annual income from generation tariff: | £723 |
| Annual saving and income | £862 |
Above figures correct as of February 2012. Figures as per the Energy Savings Trust
Once payback has been achieved for the remainder of the 25 years you will continue to receive savings annually and reduce your electricity bill. All cash received from your utility company is TAX FREE.
With systems starting from as little as £8000.00, Now is the time to Contact us for an explanation of the systems and a no obligation, Free quotation.
