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Government Generation incentives explained

The Feed in Tariff (FIT) is a UK Government subsidy paid to householders or businesses who invest in electricity generating systems. This is paid to you regardless of whether you use the electricity you generate or not. It is purely an incentive to encourage the uptake of self generation.

Why have the government introduced the feed in tariff (FIT)

a) To kick start the adoption of renewable's in the UK
b) To help the government meet the UK’s carbon reduction targets

How can I benefit from the FIT system?

A solar installation is by far the best way to generate your own electricity, the amount you generate is not guaranteed of course as no one can predict the weather. The current FIT payment is £0.433 per kilowatt of electricity self generated.

On average a 4k system on a south facing roof will earn between £1600 - £1800 per year from the FIT. The scheme is guaranteed for 25 years, is tax free, and is also index linked to inflation.

A member of Our MCS approved team will estimate the monetary savings, or incentive payments you can earn, using a government approved software package. The software uses the weather data relative to your region, over the last 20 years.

How does the current FIT system work?

You install the Solar panels on your house roof, the garage roof, or even in your garden. The panels harness daylight, not just sunlight, to generate electricity. You get paid for every kilowatt of electricity your panels generate. This is measured by a generation meter, which the system installer puts in your home Solar PV works best when south facing. This is due to the fact the south facing panels absorb the maximum amount of daylight. They also work in east or west configurations; although at a lower efficiency level (North facing panels are not recommended.)

How much can I save from the Export Tariff?
Your electricity provider will also pay you for the electricity you send back to the grid this is called “The Export Tariff”. The provider will pay you £0.031 for every Kilowatt of electricity you export or 50% of your total generation.

Other Saving/Advantages

During the days when the Solar PV panels are generating electricity, you can use this energy for free, as it’s your electricity. If you can time your washing machine, tumble dryer, immersion heater or other electrical appliances to work during the day, when the panels are generating electricity, the appliances could potentially run for free. Solar gain is not restricted to only Spring and Summer time. Solar gain can be achieved on any bright day during the year.