From the 1st of April 2010 building owners who install solar PV and other low carbon electricity technology are paid for all the electricity they generate, including the electricity that they use.
The rate for retro-fitted installations up to 4kW is 41.3 pence per kilowatt hour (p/kWh), for new build 36.1p/kWh and for new and retro-fitted installations between 4kW and 10kW the rate is 36.1p/kWh.
For surplus electricity not used within the building but fed back to the grid there is an additional 3p payment for every kilowatt hour exported.
Payments are linked to inflation and will continue for 25 years from the installation date.
For example, a typical 2.5kW solar PV installation could generate an income of around a £1000 per year as well as saving £200 a year on electricity bills (an approximate 8% to 10% return on the initial investment).
Tariff levels
Technology Scale Tariff level (p/kWh) Tariff lifetime (years)
Solar electricity (PV) > 4 kW (retro fit) 41.3 p/kWh for 25 years
Wind < 1.5 kW 34.5 p/kWh for 20 years
Wind >1.5 – 15 kW 26.7 p/kWh for 20 years
Micro CHP < 2kW 10.0 p/kWh for 10 years
Hydro-electricity < 15 kW 19.9 p/kWh for 20 years
Tariff levels vary depending on the scale and type of the installation. The tariff levels shown in the table above apply to installations completed from 15th July 2009 to 31st March 2012 for the lifetime of those installations. After this date, the rates decrease each year for new entrants into the scheme. All generation tariff and export tariffs will be linked to the Retail Price Index (RPI) which ensures they rise with inflation.
The unit rates to purchase fuel for energy vary considerably around the UK and depent on the type of scheme and the particular supplier of the fuel source. It is probably fair to say that the eventual financial return based upon the Feed in Tariff [FIT] for energy generated at the property from acceptable renewable non-carbon methods will be greater than the expenditure.
Ed.
