Micro Generation Scheme, Feed-In Tariff
The generation tariff is the main payment of the Feed-In Tariffs and is paid on the total output of the renewable energy system - whether you feed it into the grid or use it yourself.
As of 12th December 2011, the feed-in tarrif for any new installations has been reduced by the government. These changes do NOT make solar PV any less of a good investment, due to the cost of solar panels and inverters being reduced heavily, not to mention the increasing price of electricity and gas.
| Source | Array Size | Rate per kWh | Rate lifetime (Years) |
|---|---|---|---|
| The tariffs are index-linked to the RPI as further described below. Only Commercial and Industrial Installations are subject to VAT. |
|||
| Solar PV | ≤4 kW Retrofit | 21.0p | 25 |
| Solar PV | ≤4 kW New Build | 21.0p | 25 |
| Solar PV | >4-10kW | 16.8p | 25 |
| Solar PV | >10 - 50kW | 15.2p | 25 |
| Solar PV | 50kW - 100kW | 12.9p | 25 |
| Solar PV | Standalone | 8.5p | 25 |
“Retrofit” - installed on a building previously occupied.
“New Build” - installed on a new building before first occupation.
“Stand-alone” - not attached to a building and not wired to provide electricity to an occupied building.
Earn Money, Save Energy
Solar photovoltaic generation earns you money by selling the electricity you generate!
From the 1st of April 2010, the Feed-in Tariff scheme became available to Great Britain. Under this scheme it is compulsory for energy suppliers to make regular payments to householders who generate their own renewable electricity. If you are eligible, you will benefit in 3 ways:
1. Generation tariff: a set rate paid by your electricity supplier for each unit (kWh) that you generate, even if you use it in your home. Currently this rate is 21.0p per unit and is fixed for 25 years from the date of installation completion. After 31st March 2012, the rate for new installations will decrease each year.
All generation and export tariffs will be linked to the Retail Price Index (RPI) which ensures that each year they follow the rate of inflation.
2. Export tariff: any electricity you generate but do not use, you will receive a further 3.1p per unit from your energy supplier that you export back into the electricity grid.
3. Savings on your bill: the electricity you generate can be used to power your home, this means you will require less energy from your supplier and therefore save money on your electricity bills.
As an example, a typical domestic (single phase) solar electricity system, with an installation size of 4 kWp could earn around:
- £693 per year from the Generation Tarrif
- (estimate of 3300kWh x 21.0p) - £50 per year from the Export Tarrif
- (Assuming 50% of energy generated is used on site. 1650kWh x 3.1p) - £200 per year reduction in electricty bills
- (50% of energy generated fed back into the grid. 1650kWh x 15p)
The array size brackets above are Per Phase, this means that if your property has a Three Phase supply, you could have 3 Single Phase arrays, each at 21.0p per unit, effectively trippling the amount of energy generated.
