The UK's Solar Feed-in Tariff: Let your solar panels earn you money

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Solar Energy Feed-in-Tariff (FiT) for UK Households

The UK maintains one of the most beneficial incentives for installing solar power in the world; the Feed-In Tariff (FiT). The Clean Energy Cash back Scheme was launched on 1 April 2010 and will run for 20 years. Householders will now be paid a gradually reducing rate for electricity they generate via the FiT. The rate is reduced every 3 months based on installation numbers across the UK; however once installed, a Solar PV System locks in the FiT rate of the present day for 20 years.

Installations completed after July '12 will only be eligible for the higher tariff rates if the property is rated at Level D or above on the EPC (Efficiency Performance Certificate) chart. So act now to avoid the possibility of further expenses to reach this required level of efficiency.

According to Government figures this would result in up to £800* in annual benefit (this will grow with time as rates are linked to inflation) for a 4kWp solar installation (starting from £5,500 inc VAT). This offers a Rate of Return of approximately 18%!!

*This figure assumes that 50% of the generated power is sold back into the grid.

The Department of Energy and Climate Change (DECC) aims to get 7 million owner-occupied and rented households in the UK hooked up with solar by 2020.

Read Solar Selections blog articles about Solar Feed-in Tariffs in the UK

Read about solar power system finance advice from Solar Selections.

Feed-in Tariff levels for systems with an Eligibility Date between 1st January 2014 and 1st April 2014:

-Tariff for <4kW retro-fit PV installs = 14.90p/unit (in year one*).

-Tariff for <4kW new build PV installs = 14.90p/unit  (in year one*).

-Tariff for >4-10kW PV installs = 13.50p/unit  (in year one*).

-Tariff for >10-50kW PV installs = 12.57p/unit (in year one*).

-Tariff for >50kW - 150kW = 10.71p/unit (in year one*).

-Tariff for >150kW - 250kW = 10.25p/unit (in year one*).

-Tariff for >250kW - 5MW = 6.61p/unit (in year one*).

-Tariff for off-grid PV installs = 6.61p/unit (in year one*).

-EXPORT Tariff = 4.64p/unit (in year one*).

*Guaranteed 20 year tariff lifetime with annual raises indexed to inflation. Therefore the tariff in year one should be the lowest tariff that is received for each kWh generated.

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