The Feed In Tariff was introduced by the government in April 2010 to encourage the uptake of renewable energy, at both a commercial, and a domestic level. It pays income to owners of solar PV generators based on the actual generation of their systems. The payments are made irrespective of whether or not you use the electricity generated – but of course the more you use, the more your savings are.
In short, anybody installing a qualifying renewable energy system is able to benefit in three ways:
· A guaranteed payment for every unit of electricity generated by the system
· A further payment for every unit of electricity that is not used, but exported back to the National Grid
· Reduced electricity bills
At a domestic level, an average 4kW system costing, say, £5,500 to install, would generate in excess of 3500kWh (units of electricity) a year.
This would produce three cash benefits:
· Generation payment of £140*
· Export payment of £88
· Bill reductions of £245
That’s a total of £473 – minimum – a year – and carbon savings of 1819kg a year too. In practice, most of our installed systems outperform our estimates by at least 10 percent.
Bill reductions can be higher depending on how much electricity you use – this estimate is based on using 50% of the electricity you generate. If you install a smart switch or battery storage system, your savings could be much higher.
Feed In Tariff payments are guaranteed for 20 years, and returns are index linked – so as energy bills soar, so will your income.
All grid connected solar photovoltaic systems qualify – so long as they are installed by a MCS accredited installer (such as Ecocetera).
Properties also need to produce an Energy Performance Certificate (EPC) showing a rating of D or above in order to qualify for Feed In Tariff payments at these rates. But don’t worry, we have that covered. At Ecocetera, we will be able to tell you when we quote whether or not your home will achieve a D rating – and if not, how you can make improvements to ensure it does!
At Ecocetera, we will hold your hand through the Feed In Tariff application process, and make sure you have everything in place to start receiving payments.
Rates for new systems decrease by about 1.5% every quarter – you can see the full rate table below.
* Based on the new Feed In Tariff rates effective from 01/10/17 to 31/12/17