Latest incentives
What is the Feed-in tariff?
The Government today finalised their Feed-in Tariff, also know as the ‘Clean Energy Cashback’ scheme. This means that from April, homeowners who install solar electric systems on their houses will be paid a substantial premium for all of the electricity they generate from their system. So now installing solar is a fantastic investment, as well as a hedge against rising electricity prices and a way to cut carbon.
Key points of the scheme
- The feed-in tariff for homeowners is set at 41.3p per unit generated from a solar electric system
- Home owners will also receive an additional payment of 3p for the units they export to the grid
- The payments are guaranteed by law for 25 years
- The payments will rise with inflation
What this means in practice
Here’s an example for what it means for you, based on a typical size of domestic solar system (12 panels) on a south-facing roof in the UK:
- For a 12 panel system, fully installed, typical cost is £12,500 today you’ll be paid 41.3p for every unit that the system generates, worth £878
- Some of the electricity from the system will be used by your home instead of grid electricity, and the rest exported to the grid - If this is split 50:50, you’ll then get £138 of electricity savings and £32 of export income as well the £878: a total of £1,048 of income and savings
- These values are inflation-linked, so what you get will go up each year. The system pays back in 10 years
- This is equivalent to a profit of £25,000 over the 25 years of the scheme, or a return of 9%
We are not financial advisors, but we think that sounds like a great investment!
Solarcentury and the feed-in tariff Solarcentury is the UK’s leading solar company, providing solar technology for buildings. We have installed solar on more homes in the UK than anyone else. If you would like a quote from your local installer please fill in our online application form.
We will also be introducing a new scheme for homeowners to benefit from solar PV at a reduced upfront cost; if you are interested in hearing more about this please register to be kept up to date.
We have also put together this downloadable pdf which helps explain the Feed-in tariff
The small print
1. Solarcentury is not a financial services company, so the example shown is indicative only. Customers wanting to compare solar PV as an investment or security should consult an IFA or other relevant professional.
2. All the numbers used in the example shown are averages or typical values. For instance, the cost of a PV system may vary depending on how easy or complex an installation it is; the money made or saved will vary depending on location in the UK and how good a site it is for solar PV (ideally an unshaded, south facing pitched roof); electricity consumption patterns vary by household.
In reference to the diagram above:
Income from Feed-in Tariff = £878 per year
Savings on your bill from solar electricity† = £138 per year
Income from exporting solar electricity† = £32 per year
† EST - 50% export and avoided cost
Note: based a 2.5kWp solar electric system producing 2125kWh per year
* DECC publication - Quarterly Energy Prices
** Energy Saving Trust (EST) - 13.95p per kWh
