Feed In Tariffs Explained

The Government's Feed In Tariffs Explained

Where are we up to with the Feed in Tariff?

FiT Rates for Solar PV 1 November 2012 – 30 June 2013

Tariff Band Fit Tariff November 1 – June 30 2013 Export Tariff 1 Nov 12 – 30 June 2013 FiT 1 July – 30 Sept 2013 Export Tariff 1 July – 30 Sept 2013
≤4kW 15.44p 4.5p 14.90p 4.64p
>4-10kW 13.99p 4.5p 13.50p 4.64p
>10-50kW 13.03p 4.5p 12.57p 4.64p
>50kW-5MW 11.5p 4.5p 11.10p 4.64p
>100-150kW 11.5p 4.5p 11.10p 4.64p
>150-250kW 11p 4.5p 10.62p 4.64p
>250kW-5MW 7.1p 4.5p 6.85p 4.64p
Standalone 7.1p 4.5p 6.85p 4.64p

Scheme lifetime 20 years for new solar installations

How the Feed in Tariff Scheme works: Basically the FiT scheme is made up of 3 components

  1. The Generation Tariff
  2. The Export Tariff
  3. Your per unit Energy Costs

Below is an explanation of how returns are calculated for systems installed on domestic property – under 4 kWp (kilowatt Peak) After the Tariff Change on 01/07/2013

A B C D E F G H
System Size on South Facing Roof Energy Generated Per Year in Northwest of England Generation Payment @ 15.44P / kWh Export Tariff Paid at 4.5p / kWh Energy Consumed by your Home (50% of what's Generated Annual Energy Savings @ 15p / kWh Total Returns per Year (C + D + F) Annual Difference in Total Return After Rate Change on 1st July
4.00 kWp 3434 £530.21 £77.27 1717 £57.55 £865.02 -£16.14
3.00kWp 2575 £397.58 £57.94 1287.5 £93.13 £648.64 -£12.10
2.00 kWp 1717 £265.10 £38.63 858.5 £28.78 £432.51 -£8.07
1.50 kWp 1288 £198.87 £28.98 644 £96.60 £324.45 -£6.06

If the cost of a mid-range 4kWp solar system is £6,500 including VAT @ 5% then the return on that system, using the example above would be:-

£848.88 / £6,500 = 13.06% - using the above figures

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