The ‘Feed in tariff’ scheme is great news for consumers who are looking to install solar PV. The scheme has many benefits which include an inflation proof tax free income which is guaranteed for 20 years, from the electricity your PV system generates, it now makes more than financial sense to install PV as the ‘Feed in tariff’ has added another dimension for consumers.
The ‘Feed in tariff’ as of the 1st of October 2017 for photovoltaic solar panels is 4p/kWh and an export income of 5.03p
The higher Feed in Tariff of 4p/kWh applies if your property achieves a band A to D on its Energy Performance Certificate (EPC). If your property’s EPC is band E to G a PV installation would attract a FIT of only 0.38p/kWh.
All installations have to be MCS approved to qualify for the scheme.
For more information on financial incentives, see http://www.energysavingtrust.org.uk/Generating-energy/Getting-money-back/Cashback-Calculator
There are three financial benefits from FITs:
Generation tariff – the electricity supplier of your choice will pay you for each unit (kilowatt) of electricity you generate
Export tariff – if you generate electricity that you don’t use yourself, you can export it back to the grid. You will be paid for exporting electricity as an additional payment (on top of the generation tariff)
Energy bill savings – you won’t have to import as much electricity from your supplier because a proportion of what you use you will have generated yourself, you will see this impact on your electricity bill.