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Find out more about feed in tariffs
From the 1st July 2015 Feed-In-Tariff rates are as follows;
Forming Equipment
| System size | FiT rate p/kWh |
|---|---|
| 0-4kW | 12.92 |
| >4-10kW | 11.71 |
| >10-50kW | 111.71 |
| >50-100kW | 9.63 |
| >100-150kW | 9.63 |
| >150-250kW | 9.21 |
| >250kW-5MW | 5.94 |
| Stand-alone | 4.44 |
| Export tariff | 4.77 |
How the scheme works
If you are eligible to receive the FIT then you will benefit in 3 ways:
- Generation tariff- a set rate paid by your energy supplier for each unit (or kWh) of electricity you generate.
Now set at 12.92p/KWh this income is tax free and index linked to RPI, so will rise with the rate of inflation over the life of the tariff for a period of 20 years. - Export tariff- you will also receive a further 4.85p/kWh from your energy supplier for each unit you export back to the electricity grid that is when it isn’t used on site.
- Energy bill savings– you will be making savings on your electricity bills , because generating electricity to power your appliances means you don’t have to buy as much electricity from your energy supplier. The amount you save will vary depending how much of the electricity you use on site.
Domestic FIT installations have their export estimated at 50%. This will remain until smart meters are rolled out across the UK.
Example of how the Feed-in Tariff works
As an example, a typical domestic solar electricity system, with an installation size of 4.00 kWp could earn around:
*Based on current rates
- £478 per year from the Generation Tariff @ 12.92 p/KWh
- £90 per year from the Export Tariff @ 4.85p for 50% KWh generated
- £240 per year reduction in current electricity bills based on 13p average import price.
This gives a total saving of around £808 per year.
This assumes 50% of the electricity generated is exported. The figure will vary depending on how much is exported.
This means that there has never been a better time for you to install a Solar PV system. Not only will you be significantly reducing your carbon footprint, you’ll also be reducing your energy bills and getting paid to do it!
