How the scheme works
If you are eligible to receive the feed-in tariff (FIT) then you will benefit in 3 ways:
- Generation tariff:
A set rate paid by the energy provider for each unit (or kWh) of electricity you generate. This will change each year for new entrants to the scheme (except for the first 2 years) but once you join you will continue on the same tariff for 25 years. - Export tariff:
You will receive a further 3p/kWh from your energy supplier for each unit you export back to the electricity grid, that is when it isn't used on site. - Energy bill savings:
You will be making savings on your electricity bills because generating electricity to power your appliances means you don't have to buy as much electricity from your energy supplier. The amount you save will vary depending how much of the electricity you use on site.
Deemed Export
Domestic FIT installations are likely to have their export deemed (estimated) at 50% in most cases until smart meters are rolled out.
Example of how the Feed-in Tariff works:
Electricity is created by solar panels. Your electricity supplier pays you for each unit of electricity you generate
You can use the electricity you generate meaning you don't have to import from the grid
You export electricity back to the grid when you don't use it. You are paid an export tariff
You import electricity from the grid when you need additional power
As an example, a typical domestic solar electricity system, with an installation size of 2.7 kWp (kilowatt peak) could earn around:
- £990 per year from the Generation Tariff
- £40 per year from the Export Tariff
- £140 per year reduction in current electricity bills
This gives a total saving of around £1,170 per year.
This assumes 50% of the electricity generated is exported. The figure will vary depending on how much is exported.
Please contact us here to arrange a free no-obligation survey of your premises.
