Feed In Tariff Explained

What is the Feed in Tariff?

Feed in Tariffs were introduced in April 2010 in an attempt to try and increase the amount of renewable energy generated in the UK.  As a country we need to hit a legally binding target of 15% of total energy from renewables by 2020.

If you install electricity-generating technology, such as Solar PV, the Government scheme guarantees an index linked tariff for 20 years.

Not only will you be paid for the electricity you generate, even if you use it all yourself, you will also be paid for any surplus electricity you export to the grid.  And of course you'll also save money on your electricity bill, because you'll be using your own electricity.

Summary of financial benefits:

Generation tariff - your energy supplier will pay you a set rate for each unit (or kWh) of electricity you generate. The tariff is guaranteed for 20 years and is index-linked. 

Export tariff - you will also receive a further 4.5p/kWh from your energy supplier for each unit you export back to the electricity grid.  At present, smart meters that measure what is exported are not compulsory.  Until they are, the exported energy is estimated as being 50% of the total electricity your system generates.

Energy bill savings – in addition, you will be making savings on your electricity bills as you will not purchase as much electricity from your energy supplier.

With ever increasing electricity prices, Solar PV has become more economically attractive than ever before and has the highest payback rates of all the renewable technologies, thanks to the Feed in Tariff.

Contact Alvesta Energy to arrange a FREE no obligation survey.