How feed-in tariffs work
The feed-in tariff scheme rewards you for the amount of energy your PV system generates, regardless of whether you consume the electricity or not. You are also paid for any electricity exported. All income generated will be completely tax free.
This is a government-backed policy, introduced to encourage householders to install solar PV systems to generate their own electricity. It has cross-party support and was reaffirmed in the Comprehensive Spending Review.
Read on below for more information on the tariffs. Contact us for your free survey from a Sun Switch solar PV system designer based in your area.
Householders will earn or save:
- 43.3p for each kWh of electricity generated by your Sun Switch system, whether you use it or not. This is the generation tariff.
- 13p for each kWh used to power your lights and appliances, since you will not have to buy that electricity from your energy supplier.
- 3.1p per kWh for any electricity not used in the home and exported to the grid; the export tariff.
Any income generated will be completely tax-free, and the entire feed-in tariff scheme is guaranteed for 25 years.
Each year the feed-in tariff, and the money you will earn, will increase by the Retail Price Index (RPI). These tariffs are only guaranteed if you install your solar PV system before April 2012, so there is a real incentive to install your Sun Switch system now. The feed-in tariff (both generation and export tariff) is guaranteed for 25 years.
Tariff levels for solar electricity (PV) systems installed between
15th July 2009 and 31st March 2012
| Scale | Tariff level (p/kWh)* |
| ≤4 kWp (retro fit) | 43.3 |
| ≤4 kWp (new build) | 37.8 |
| 4-10 kWp | 37.8 |
| 10-100kWp | 32.9 |
*As of 1 April 2011 which take into account rise in Retail Price Index (RPI) which was 4.8%
Frequently asked questions about feed-in tariffs
How do I apply for feed-in tariffs?
Once your PV system has been installed, you will be registered on the central feed-in tariff database and sent a certificate confirming your compliance.
To receive the feed-in tariffs, you will need to send your application form to your chosen electricity supplier and inform them that you are eligible to receive the feed-in tariffs by providing the certificate.
Your electricity supplier will pay you, usually by a cheque or direct payment for the electricity generated by your solar PV system. The amount you will be paid will depend on the size of the system.
Who pays for the feed-in tariffs?
The feed-in tariffs are established in law and are a government initiative, but the money paid for the tariffs come from the energy market and are paid by the energy suppliers. The suppliers recover this cost by passing on the cost of the feed-in tariff scheme to all standard consumers. This means that people who don’t install PV systems pay for those who do.
Will I need a special meter to be able to claim the feed-in tariffs?
A generation meter, showing how much electricity the system has generated, will be installed during the installation of your PV system. You will be asked to provide meter readings to your chosen electricity supplier, usually every quarter (you will most likely be paid quarterly by the supplier).
What happens if I move home?
The ownership of the solar panels would transfer to the new owner as the ownership of the technology is linked to the site.
I rent my property. Who would receive the feed-in tariffs if my landlord installs PV panels?
Regardless if it is a domestic or a commercial property, it will be up to landlords and tenants to come to an arrangement about the on-site electricity use benefits and receipt of payments.
Get a free solar PV survey
Contact us today for a free, no obligation site visit from one of our system designers, who will carry out a PV assessment of your home and talk to you about what system is best suited for you.
Critical changes to the Feed in Tariff scheme.
Alison Cutland,
Sun Switch sales manager
We have over 20 years' experience of helping people improve energy efficiency in their homes. Read about our heritage or contact us for a free, no obligation visit from a PV system designer based in your area.
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