- Tel: 01932 78 48 48
- Fax: 01932 78 48 49
- E-mail: info@solarpower.co.uk
The highly anticipated solar “Feed in Tariff” (FIT) has finally come into effect as of 1st April 2010. This scheme means that utility companies are obliged to make payments to individuals, communities or companies that generate their own electricity.
The scheme guarantees a minimum payment for each unit of electricity produced as well as a separate payment for any excess energy that is not used in the building and is sold to the grid.
The following example is from the Energy Saving Trust for how much an average 2kWp (16m2) system could earn
Total savings £830 / year.
As Rayotec is a MCS accredited installer we can help our customers take full advantage of the fantastic feed in tariff opportunity.
| Scale of system | Rate / kWh | Tariff Lifetime | |
|---|---|---|---|
| PV ≤4 kWp (retrofit/exiting) | Typical Domestic | 41.3 pence | 25 years |
| PV ≤4 kWp (new build) | Domestic | 36.1 pence | 25 years |
| PV >4-10 kWp | Small Commercial | 36.1 pence | 25 years |
| PV >10-100 kWp | Large Commercial | 31.4 pence | 25 years |
| PV >100kW-5 MWp | Very Large Commercial | 29.3 pence | 25 years |
To receive the feed in tariff the Installer, PV panels and solar inverter all have to be approved by the Microgeneration Certification Scheme (MCS). Rayotec are one of the first companies to be approved under the MCS and we only use approved products.
Rayotec will install an additional meter that will measure how much energy the PV system produces. Once the installation is finished we will register our customers on the central "feed in tariff" database and they will then receive a certificate confirming their registration. This certificate must then be sent by the client to their utility company as proof of eligibility to receive the "Feed in tariff". The payments will made by the utility company directly to its client. The interval of payment differs between the various suppliers.
The "feed in tariff" and export tariff are both linked to the Retail Price Index (RPI). The Retail Price Index in used to measure the rate of inflation in the UK. It measures the average change from month to month in the prices of goods and services purchased by most households in the United Kingdom.
The fact that the "feed in tariff" and export tariff are index linked makes the installation of a PV system inflation proof.
Remember that the average rate of inflation for the last 20 years has been over 3% which is considerably higher than the interest rates available with most UK bank accounts.
All the payments generated for the client from the "Feed in Tariff" is free from income tax.
Once you buy and register your PV system the "Feed in Tariff" is then fixed for 25 years. However the government has decided to reward the first adopters with the highest tariff. From April 2012 the tariff will reduce each year for new installations.