SOLAR PHOTOVOLTAIC (PV) –
HOW THE REBATE SCHEME WORKS
Those that do not invest pay
Solar PV installation can seem complicated but in truth it is all very simple for the householder or business owner.
We are an NICEIC MCS (Microgeneration Certification Scheme) registered contractor. PV panels generate electricity which can be used to power equipment thus reducing the amount of energy used or generating power that is sold to the National Grid network as part of the government’s Feed-in Tariff (FIT) scheme.
The UK government has devised a scheme where each registered PV system is eligible for a FIT “energy cashback” with the energy suppliers providing a guaranteed rebate for a 25 year period.
As from April 1st 2010 energy suppliers are required by legislation to pay a premium on the energy generated by each system whether it is used on site or exported to the grid system. The energy suppliers must allow for this rebate within their costs so that in effect those who do not invest in energy generation meet the funding requirements for those that do.
Strict guidelines on the materials and installation of any eligible PV system are in place to maintain high standards and deliver on the government commitment to energy generation and conservation. All systems must be installed and certified by MCS registered installers. As a registered MCS installer FTD can install this equipment.
Why Solar PV?
• Feed-in Tariffs are paid directly to the owner.
• Payback is typically less than 10 years.
• A reduction in your energy bills over 25 years.
• PV systems have little maintenance, no moving parts and are noiseless.
• Surplus electricity is exported to the grid.
• Your energy usage is reduced.
• Investment in a highly reliable system over a typical lifetime of 25-30 years.
• The kit fits seamlessly into your existing grid connection.
• Generating your own electricity reduces your dependence on your electricity supplier.
• Typically 850-kilowatt hours (kWh) are generated annually from each kW of PV panel.
• You will reduce your carbon footprint by over 1 tonne of Co2 with a typical 2.8kW installation.
Too good to be true?
The government launched FITs (Feed-in Tariff) schemes for homeowners and commercial enterprises that encourages power generation from renewable sources to meet national obligations to reduce fossil fuel generated energy and to cut carbon emissions.
By choosing to install a solar PV system on your building you can not only cut your electricity bills, but generate income too – through the Feed-in Tariff (FiT). Available in Great Britain as on 1st April 2010, this scheme guarantees a minimum payment for all electricity generated but the solar PC system installed (generation tariff), as well as a separate payment for any unused electricity exported to the grid (export tariff).
These payments are made directly to you by your energy provider and are in addition to the bill saving made by using the electricity generated on-site. Current payment levels for solar PV are shown in the table below.
| Technology | Scale | Tariff level (p/kWh)* | Tariff lifetime (years) |
| Solar electricity (PV) | ≤4 kW (retro fit) | 43.3 | 25 |
| Solar electricity (PV) | ≤4 kW (new build) | 37.8 | 25 |
| Wind | ≤1.5 kW | 36.2 | 20 |
| Wind | >1.5 - 15 kW | 28.0 | 20 |
| Micro CHP | ≤2kW | 10.5 | 10 |
| Hydroelectricity | ≤15 kW | 20.9 | 20 |
Tariff levels, for technologies installed between 15th July 2009 and 31st March 2012 of most significance to householders
VAT
MCS accredited supplied and installed systems qualify for VAT to be charged at the reduced rate of 5%.
For more information or to get a quotation please telephone us
on 0207 700 6277 we are always happy to help with any
enquiries, you can also e-mail us at info@ftd-ltd.co.uk
or you can fill in our contact form.
