Feed in Tariffs
The Feed in Tariff (FIT) scheme guarantees a minimum payment for all electricity generated by the solar power system, as well as a separate payment for the solar electricity exported to grid. These payments are in addition to the bill savings made by using the electricity generated on-site.
Once you have a solar panel system installed you will immediately see a reduction in your electricity bill and then receive an income from your Feed-in tariff provider.
TA Solar PV system provides benefits in 3 ways;
1. Generation tariff
a set rate paid by the energy supplier for each unit (or kWh) of electricity you generate. This rate 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 20 years. At present the rate for most domestic projects is 14.38p/kWh, but this is subject to a planned degradation.
2. Export tariff
you will receive a further 4.77p/kWh from your energy supplier for each unit you export back to the electricity grid, that is when it isn’t used on site.
3. 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.
As an example, a typical domestic solar electricity system, with an installation size of 4.0 kWp could earn around:
£500 per year from the Generation Tariff
£80 per year from the Export Tariff
£245 per year reduction in current electricity bills.
This gives a total saving of around £825 per year.