Clean Energy Cash Back Scheme and Feed-in Tariffs Announcement

The benefits of a Solar Electric System:

• Generation tariff set at 41.3pence per kilowatt hour.
• Export tariff set at an additional 3 pence per unit, i.e. 44.3 pence per kilowatt hour.
• Income GUARANTEED for 25 years
• 7% – 10% return on investment
• Rates are INDEX LINKED to inflation
• All tariff income is TAX FREE
• Reduced carbon footprint
• Reduced reliance on utility companies
• Increased property value

What is the Feed-in Tariff?

The feed in tariff is a new scheme announced by the Government on February 1st 2010 to reward homeowners for generating clean renewable electricity. Homeowners who have a solar electric PV panel system installed from July 2009 onwards will benefit from the scheme and start earning returns from April 1st 2010.
The feed in tariff works on the basis that the consumer will be paid for each kilowatt hour of electricity their system generates even when this is used in their own home. There is also an additional payment for electricity which is not used and then fed back into the national grid.
The initial rate at which payments have been set is 41.3 pence per kilowatt hour for all electricity generated by your system. In addition, you will be paid a further 3 pence per kilowatt hour (44.3p per kilowatt hour) for electricity exported to the national grid.

Who Qualifies for Feed-in Tariffs?

Homeowners who have a PV electric solar system fitted on or after July 2009 and have a 4kWp or smaller system will qualify for the feed in tariff.

Ofgem will administer the scheme and electricity suppliers will be responsible for paying the reward to their customers.

How much will I earn?

A typical 2.5kW well sited solar PV installation could offer a homeowner a reward of up to £900 and save them £140 a year on their electricity bill.

The money that you receive will be dependant on the size of system you have fitted but the government estimate you will receive between 7 – 10 % return on your investment.

Why are the Government doing this?

The Government have been set targets to meet and have made commitments to reduce carbon emissions and secure future energy supplies. The most effective way of doing this is to make small scale renewable energy an attractive proposition for householders. By giving a generous return on investment it is hoped this will initiate a speedy take up of solar electric. The initial Feed in Tariff rate of 41.3 pence will be available for a limited period in order to incentivise homeowners to enter the Scheme sooner rather than later.

Will the amount you earn change?

The Feed in Tariff will be indexed linked, which means the rate will rise in line with inflation so the tariff you receive will not be devalued over time.

Government Guarantee

The Government will guarantee your Feed in Tariff for 25 years. This leaves plenty of time for you to realise the return on your investment. This also highlights the necessity to act quickly as the higher rate tariff will make payback significantly quicker over 25 years.
This guarantee of long term income also adds weight to the belief that investing in solar power may add value to and improve the saleability of your property.

Where’s the catch

The Feed in Tariff has to be paid for somehow, so a frequently asked question is “With the economy the way it is, how can the government possibly fund this?”
The answer is that the government are not directly funding this scheme but will be raising funds through a general increase in electricity prices to the standard consumer. This works in a similar way to the current climate change levy which is added to our bills at the moment. The scheme has been devised to prompt individuals to act quickly and install renewable solar energy whilst it makes financial sense.

Our trained advisors will be able to explain in detail how the new scheme will benefit you, calculate your expected payback and advise how you can export or sell your unused energy back to the grid. For a feasibility survey and obligation free quote CLICK HERE .