Make money from the Solar PV Feed-In Tariff

The Solar PV Feed-in tariff is a great way of generating an income from the renewable energy you produce.

From April 2010 the Government passed a bill stating that anyone who is generating renewable energy (up to 4KW on a domestic property) will be paid for everything they generate for both the units consumed by their property and all excess units that are not used. (see Ofgem).

The Feed-In Tariff generates an income in three ways:

  • PV Microgenerators will be paid for every kWh or unit they generate.
  • Get paid an additional guaranteed export rate for what is not consumed and sold back to the grid (wholesale rate 4.85p per kWh).
  • Plus you have significant savings on your electricity bill.

Any PV system installed from 1st July 2015 to 30th September 2015 will be paid 12.92p per kWh for all energy produced as long as the property in question obtains an EPC rating of D or more.  If the EPC is rated E or lower the FIT payment is currently 5.94p per kWh.

This tariff is guaranteed for 20 years, retail price index linked and tax-free.

For Example:

A 4kW system with typical UK light levels will produce approximately 3540 kWh per year. Through the current FIT you could earn around £457 per year for the total amount of electricity the system generates at 12.92p per kWh - guaranteed for 20 years REGARDLESS OF WHETHER YOU USE IT OR NOT!

Plus an additional £283 in savings made by not having to buy electricity from the grid. This assumes electricity brought from the grid at 16p per kWh. (See video below.)

Giving you a total INCOME at 2015 rates of £740 in your first year. Remember this payment is linked to the Retail Price Index and is Tax Free..!

How the UK Feed-in Tariff Works

A step-by-step guide to the UK Feed-in Tariff as it applies to Solar PV.

 
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