Feed In Tariff’s (F.I.T’s)

What is the Feed-in Tariff?

The Feed-in Tariff (FIT) is a government backed scheme launched on 1^st April 2010 to encourage homeowners to generate green electricity.  The scheme offers generous payments to homeowners for energy produced from renewable sources like solar power. Any approved installation will come complete with a solar generation meter. The meter records the amount of electricity that has been generated by the solar photovoltaic system. It is also used to calculate the amount of surplus electricity sold back to the electricity supplier.

The good bits

The payments from Feed-In Tariff’s come in two parts and depends on the number of units you consume and the number of units you export back to your energy supplier. Any system up to 4 kWh will receive a rate of 21.0 pence for every kWh of energy generated.  If the unit generated is immediately utilised within the household then the household does not have to purchase the unit from the electricity supplier. If you are currently paying you electricity supplier 13 pence per kWh (or in some instances more) this represents a value of at least 34 pence per kWh.

Any unit of electricity not utilised immediately within the household can be exported back to the energy company for an additional 3.1 pence, making each kWh worth up to 24.1 pence if utilised in this way.

The FIT payments:

• are tax free to domestic households.
• apply for 25 years from the date of your installation.
• will increase in line with inflation (RPI).

If you are a 40% tax payer, £1,100 earned in FIT payments is worth £440 more than the same amount earned from interest on cash deposits.

How do I claim the Feed-in Tariff?

In order to claim the tariffs you need to sign a “home generation” contract with an energy supply company.  This is something that Solar Fusion can assist you with in order to ensure that you are registered as soon as possible following your solar photovoltaic installation.

For further information regarding FITs and how a Solar Fusion PV installation can save, and earn you money, please contact us using the contact form or alternatively call: 01202 208208

Latest Information about your potential Feed-In Tariff rate

For an installation that takes place between 12th December 2011 and 2nd March 2012, you will get 43.3p/kWh for generation that takes place before 31st March 2012 and 21p for generation that takes place thereafter. If your installation is between these dates, you may actually get 43.3p/kWh for the whole 25 years but this is dependent on the Government either being refused leave to appeal to the Supreme Court or the Supreme Court following the High Court and the Court of Appeal’s ruling that the proposed FIT reduction is unlawful.