Feed in Tariff
On April 2011, the government introduced the Feed in Tariffs (FITs) in replace of the previously offered government solar panel grants. Under the power of the Energy Act of 2008, this government backed scheme offers homeowners a way to have free electricity along with financial incentives that won’t get taxed for 25 years.
Feed in Tariff: Top 4 Benefits for Homeowners
While the Feed in Tariff is eligible for small-scale low-carbon electricity generating technologies such as wind, hydro, anaerobic digestion, and domestic scale microCHP, people using solar photovoltaic will receive the following exclusive benefits as stated in the FIT scheme.
1. Generation Tariff – With the generation tariff, electricity suppliers are obliged to purchase or pay households producing renewable electricity with 43.3p per kWh.
2. Export Tariff – For every unit of surplus electricity generated by the solar panels and fed back to the grid, homeowners will earn an additional 45.4p per kWh.
3. Energy Price Shield – Generating free electricity for your home will give you independence from electricity suppliers and can protect you from inflating energy prices. This gives you significant long term savings in the bank.
4. Retail Price Indexed Linked – The generation and export tariff rates are both linked to the retail price index. This means, the rate increases in line with inflation every year to protect household profits throughout the existence of the Feed in Tariff scheme.
How the Feed in Tariff Works
The Feed in Tariff scheme has a 25-year lifetime guaranteed by the government for households and establishments using the sun’s light as a source of renewable energy. In the UK, solar panel owners directly receive payments for the electricity they generate from their chosen energy supplier. In addition to that, domestic users of solar energy will earn tax-free income for 25 years. Before PV solar panel homeowners could earn the incentive of the Feed in Tariff, they have to apply for it.
It is important to have your PV solar panel system installed and registered on the central MCS database to start claiming your FIT incentives.
Until April 2012, you have the chance to gain the benefits other homeowners are currently receiving from the government with the Feed in Tariff scheme.
Apply now using our online quotation form to get connected with three of our MCS accredited suppliers offering the best priced deals available.