Feed In Tarriffs (FIT)

 

Did you know that if you install a PV panel to your home or business you will be eligible to be paid money back to you from your utility company.  You can receive money for firstly generating your electricity and secondly for any surplus energy you create which can be exported back to the grid (your utility provider).

 

The Feed In System is designed as an incentive for energy producers to move from conventional fossil fuels to renewable energy sources.  The exact government figures for the rate of the tariffs are due to be announced in January 2010.

 

The FIT System is already proven and has been in place in many states such as Germany, Israel, the US, Spain and Austria for some time now and has been instrumental to the success ad growth of the renewable energy in those countries. 

 

So you can be safe in the knowledge by installing PV you are reducing your carbon footprint, you are receiving an attractive return on investment and reducing your exposure to increases in energy prices.

 

The announced rates for PV are:

 

 

A Typical House Installation Example

 

 

Generation Tariff 36.5p  per KWh (kilowatt hour)

Export Tariff 5p per KWh

 

A standard domestic PV Installation to a size of 1.7 KWp (Kilowatt Peak, the maximum kilowatt the PV system can generate at any time.)

 

A property with a solar elevation and pitched roof of 30o with no shading.

 

Based on the SAP 2005 Data the property would produce 1,417 KWh per annum.

 

If the property uses all the produced energy the Generation Tariff alone would produce

 

36.5p x 1,417 = £517 per annum

 

*  Please note that for every 1,417 KWh produced the owner does not have to pay for this electricity from their utility provider  *

 

The current rate of electricity is 12p/KWh, although it is expected that energy costs will rise substantially over the coming years..

 

0.12 x 1,417 = £170

 

The total annual saving for this property would therefore be £687 (this would equate to a 10 year payback of the PV system)

 

Not included in the above calculations are the additional savings if any of the electricity is exported back to the utility companies.

 

If all electricity was exported there would be a total annual saving of £757 (this would equate to a 9.3 year payback).

 

From when a homeowner or business signs up to this agreement there is a 25 year guarantee on prices this would mean that from this standard installation there would be a yield of £17,000.  If energy prices increase as predicted this yield would be even greater.

 

If you you would like to find out more about feed in tariffs please contacts us on 0800 2800 0202, or click here to register with us.