the government's feed-in tariff
Solarun - solar panel

The Government introduced a scheme in April 2010 which pays you for all the solar energy you produce, even if you use it yourself. This is called the Feed-in Tariff. The scheme was reviewed in 2012 and is now guaranteed to run for 20 years and to rise with inflation (it’s linked to the Retail Price Index).

With an installation size of 2.2 kWp, and for a home with an Energy Performance Certificate of D or above, it will typically pay the householder around £370 each year (figures taken from the Energy Saving Trust website), which means that average installation costs can be recovered within approximately fifteen years. After that you will actually be generating a profit – and that income is also tax-free.

Any energy you generate and don’t need (for example, when you are out at work or away on holiday) can be fed back to the national grid, for which you will receive a further payment. This additional payment is called the Export Tariff.

The scheme is made available through your electricity supplier, who will register you, take regular meter readings and make the payments. These payments are in addition to the bill savings made by using the electricity you have generated on-site. If you are taking out a loan to pay for the installation, the tariffs are designed so that the average monthly income will be significantly greater than your monthly loan repayment over a 25 year period.

Solarun - MCS accredited installerTo qualify for the scheme your installation must be fitted by an MCS accredited installer.

More information is available on the following independent websites:

www.energysavingtrust.org.uk
www.microgenerationcertification.org
www.decc.gov.uk