Feed-in Tariffs Explained
What is the Feed in Tariff?
Renewable or ‘green’ electricity is generated from sources that release much less CO2 into the atmosphere than the oil based energy we largely rely on.
To encourage more people to generate their own electricity the Government created the Clean Energy Cash Back Scheme or Feed in Tariffs (FITs).
To be kept up to date on the latest figures please visit Ofgem:-
The Feed-in Tariffs (FITs) scheme is a subsidy, paid for by all consumers through their energy bills, enabling small scale renewable and low carbon technologies to compete against higher carbon forms of electricity generation.
So how do the FITs work?
You – as the generator – are paid for every unit or kilowatt hour your system generates, even if you use all the electricity in your property. This is known as the generation tariff.
Energy that your property doesn’t consume will be exported to the national electricity grid. You will be paid an extra tariff on top of the generation tariff for this – known as the export tariff.
Costs and Savings?
England, Scotland and Wales
A 4kWp system can generate around 3,800 kilowatt hours of electricity a year in the south of England – roughly equivalent to a typical household’s electricity needs. It will save nearly two tonnes of carbon dioxide every year. A 4kWp system in Scotland can generate about 3,200 kilowatt hours of electricity a year – more than three quarters of a typical household’s electricity needs. It will save more than a tonne and a half of carbon dioxide every year.
The average domestic solar PV system is 4kWp and the cost is now at an all time low of between £5,000 – 8,000 (including VAT at 5 per cent).
The above information comes from the Energy Saving Trust.
Is it easy to claim the Feed in Tariffs?
When your system is installed SolarLex will register this on the Microgeneration Certification Scheme database. Only MCS accredited businesses such as our can do this. Your MCS certificate enables you to sign up with your energy supplier who will administer the FIT payments for you.
When you have a solar PV system installed you can choose any energy supplier to administer the FITs on your behalf – it does not have to be the energy supplier you purchase your energy from – needless to say some have a reputation for being better than others!
Each quarter you’ll need to submit your meter reading and in return you’ll receive a cheque or payment by direct bank transfer for all the power you have generated and for any excess you have supplied back to the Grid.
Though the Feed in tariff gives you a return, the savings on your energy bills will be even greater in addition to your carbon footprint reduction makes it a favourable investment.
To find out more about how you can start saving, please contact Solarlex on 01422 369004.