Feed in tariff
All new solar PV installations stand to benefit from the solar Feed in Tariff (FIT) which came into effect in April 2010. The feed in tariff obliges all energy suppliers to pay a set rate per unit to anyone who produces their own energy under an approved renewable energy scheme such as ours. FITs are made possibly by provisions made in the Energy Act of 2008, which means that they are protected by law, offering a very secure, tax-free income stream for anyone who qualifies. Two separate rates are paid: a high rate for every unit of electricity produced, and a second, lower rate for surplus energy fed back to the grid.
Solar pays for itself
Aside from the fact that solar energy condenses 40 years of future energy payments into one single, cheaper expense, the existence of FITs means that installing a solar PV system may actually make you a profit:
- For each unit of electricity you produce, you will be paid a rate of 43.1p regardless of whether you use it. That's roughly equal to three times the price of a normal unit.
- Any surplus energy you produce is automatically fed back into the grid. You'll be paid 3p per unit for this electricity
- Solar installations can offer you substantial savings on your electricity bills
Exactly how much money will I save?
The example given here is provided by the Energy Saving trust, and is based on the installation of a 2kWp (16m2) solar PV system.
- The feed in tariff will return about £700 annually in payments
- The export tariff (sale of surplus energy) will return about £25 each year
- Energy bills will be reduced by an average of £110 per annum
This is equal to an estimated annual saving of £830. Over a possible 40 year lifespan of our product - with feed in tariffs guaranteed for 25 years - you could easily save over £20,000.
This table shows the different feed in tariff rates
| Scale of system | Rate / kWh | Tariff Lifetime | |
| PV ≤4 kWp (retrofit/exiting) | Typical Domestic | 41.3 pence | 25 years |
| PV ≤4 kWp (new build) | Domestic | 36.1 pence | 25 years |
| PV >4-10 kWp | Small Commercial | 36.1 pence | 25 years |
| PV >10-100 kWp | Large Commercial | 31.4 pence | 25 years |
| PV >100kW-5 MWp | Very Large Commercial | 29.3 pence | 25 years |
Will I qualify for FIT?
In order to qualify for FIT payments, your solar installation must be approved by the Microgeneration Certification Scheme (MCS). Here at ARC, we've made sure that we only use MCS-approved products, and are approved by MCS as a trusted installer of solar systems. If you buy from us, you're guaranteed to qualify.
Tax-free and RPI-protected earnings
All energy and revenue generated from your clean energy installation will be tax-free under current legislation. Not only that, but the price per unit of your electricity is protected against inflation by a link to the Retail Price Index (RPI).
The feed in tariffs are fixed for 25 years, with the rates dropping incrementally for new applicants throughout this period. That means you stand to make the best savings by installing solar as soon as possible.
If you like the sound of a cheap and secure energy source that's maintenance-free, and offers a tax-free income to boot, speak to one of our expert advisors today on 0208 523 0933 or contact us for more information.