Solar Panel Installation

How the scheme works…  

You will benefit 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, but once you join you will continue on the same tariff for 20 years.

2. Export tariff

You will receive a further 4.5p/kWh from your energy supplier for each unit you export back to the electricity grid, that is when it isn’t used on site. As this cannot be measured, this is calculated at 50% of what is generated. The export rate is the same for all technologies.

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.

Example of how the Feed-in Tariff works

As an example, a typical domestic solar electricity system, with an installation size of 4 kWp could earn around:

  • £710 per year from the Generation Tariff
  • £50 per year from the Export Tariff
  • £250 per year reduction in current electricity bills.

This gives a total saving of over £1,000 per year.

Tariff levels, for technologies installed after 1st August 2012

Technology Size and type of system If installed between now and July 2012*

Minimum Export Rate lifetime 

PV ≤ 4kWp (new build) 14.5p 4.5p 20 yrs

PV ≤ 4kWp (retrofit) 16p 4.5p 20 yrs

PV > 4 – 10 kWp 14.5p 4.5p 20 yrs

PV > 10 – 50 kWp 13.2p 4.5p 20 yrs

PV > 50 – 150 kWp 12.9p 4.5p 20 yrs

PV >150 – 250 kWp 12.9p 4.5p 20 yrs

PV >250kWp – 5MWp  8.9p   4.5p 20 yrs

* In 2013 a review of the Tariffs is expected to lead to a reduction of around 10% for systems that are installed after the review, systems installed before this date will always receive the rate they were allocated at time of installation

  • These rates are set for a 20 year period
  • They are index linked to the retail price index
  • For consumers the payments are tax free
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