Feed in tariff

Background

By 2020 the UK has targeted to produce 40% of its electricity from renewable sources, but as things stand the UK will only achieve 5% (and we're currently at just 2%). To encourage the business and domestic markets and provide a realistic return on investment the government has passed legislation and the tariff was officially launched 1st April 2010.

In Practice

The following tariffs are payable for installations completed before April 2012:

NEW BUILD INSTALLATION UNDER 4KW 36.1p per kwh

RETROFIT INSTALLATION UNDER 4KW 41.3p per kwh

4-10KW 36.1p per kwh

A typical modern 4 bedroom house uses 5,000 kwh of electricity on average per year. At 12p per kwh this translates to a bill of £600.

A 4KWp Solar PV installation will cost £14-£17,000 and will provide approx 3,250 kwh of clean electricity per year. The government will pay you via your energy supplier for this plus you won't be buying the electricity either.

3,250 kwh electricity generated x 41.3p £1,342

1,750 kwh still purchased from supplier -£210

So from an annual bill of £600 this example customer now has an income of £1,132

Simple calculation will provide a return on your investment of approximately 10-11 years, but remember the tariffs are guaranteed for 25 years, inflation linked and are not subject to income tax. If you can invest in further electricity consumption reduction measures it is possible to generate all of your requirements with a system like this.

The ideal installation for solar panels is a SW - SE facing roof with a 35 - 50 degree pitch, although there are numerous mounting & installation options as long is there are no buildings or trees close by. For a no obligation survey and proposal please get in touch via the contact us page.