A Little History
A few years ago, the UK Government used to offer a grant of £5000 for solar PV installations, but it got over-subscribed and couldn't afford to continue. They halved the grant value to £2500 and still were overwhelmed by the uptake. Recently they scrapped the grant scheme and started another incentive scheme...
The Latest PV Incentive Scheme
From the 1st of April 2010, anyone who has a PV (solar electric) system, fitted by an MCS accredited installer, may benefit from the Feed-in tariff (FiT). Already a huge success story over in mainland Europe, the FiT will help thousands of people in the UK live more sustainable lives and generate their own electricity, making solar electricity a financially attractive and viable option.
Here are the key benefits of the new Feed-in Tariff: -
- Guaranteed payment for 25 years
- Tax- free income
- The payments are inflation linked
- Government has aimed to provide a 7-10% rate of return
- 3p export tariff
The price that you are paid depends on the size of system you have installed: -
- Installation Capacity: ≤ 4kW (retrofit)
- Feed-In Tarrif (pence/kWh): 41.3 (year1), 41.3 (year2), 37.8 (year3)
The rates paid above are for EVERY UNIT of electricity that your system generates. If you don't use it all it will be exported back to the national grid and you will receive an ADDITIONAL 3p for each of these units.
The system must be fitted or at least signed off by an MCS accredited installer, to be eligible to join the scheme.
There's a funky calculator available on the DECC Energy Saving Trust website, to help you assess your situation.
is also a rather good resource for Solar PV: -