Feed In Tariff

In April 2010 the government launched a feed in tariff which will pay for all of the electricity generated onsite regardless of whether or not it is consumed on site. The rate given will be guaranteed for 25 years, therefore no matter what type of building you own you will make money. The figures which have been given for PV systems are as follows:

System Size (kWp)	Proposed Tariff (p/kWh)
< 4 new build	37.8
<4 retrofit	43.3
4-10	37.8
>10 <50	32.9
>50 <150	19.0
>150 <250	15.0
>250 <5MW	8.5
>Stand Alone	8.5

The above prices are fixed until April 2012.

The figures in the table above have been taken from the current Ofgem figures adjusted to the 2010RPI of 4.8% as can be found here.

In addition to this a 3p/kWh sale value of any electricity exported has also been proposed visit the DECC website to find out more.

The money made from the systems will be paid to you directly from your electricity supplier who must accept your application to become a generator. So with this kind of incentive it is difficult to justify not having a PV installation.

Feed in tariffs have been successfully implemented across Europe, and have seen PV uptake on a large scale and we anticipate the same response in the UK. However the renewable energy financial consultation also gives a depreciation of 8.5% a year on the tariff meaning those quick off the mark will be able to lock in to receive the largest tariffs.

Where does the money come from?

An addition to each household electricity bill of around £1.20/year is all it will take to ensure the future of renewable energy installations in the UK. It may not seem like much but collectively it's a huge amount and those who install PV panels will benefit financially.

For more detailed information, or to discuss a project please do not hesitate to get in touch with ICB Solar via our contact us page.