New Government Feed in Tariff for Renewable Solar Electricity is now launched
From 1 April 2010 householders and communities who install low carbon electricity technology such as solar photovoltaic (pv) panels up to 5 megawatts will be paid for the electricity they generate, even if they use it themselves. This scheme will be backed for 25 years.
PV systems registering with the scheme from 1st April 2010 to 31st March 2011 will benefit as follows:
Any system up to 4kW on a new build = 36.1p per kW pay-back
Any system up to 4kW on an existing property (retrofit) = 41.3p per kW pay-back
Any system 4-10kW new build or retrofitted = 36.1p per kW pay-back
Any system 10-100kW new build or retrofitted = 31.4p per kW pay-back
If you normally pay 12p per kWh for your electricity, you would effectively get both the power consumed for free and the FiT. So on a retrofit system up to 4kW this would mean 12p + 41.3p = 53.3p per kWh saving!
You will also get a further payment for the electricity you don't use and export to the grid.
The Department of Energy and Climate Change also published today plans for a scheme to incentivise renewable heat generation at all scales. This will come into effect in April 2011 and guarantee payments for those who install technologies such as solar heating, ground source heat pumps, biomass boilers and air source heat pumps.
Under the proposed tariffs the installation of a ground source heat pump in an average semi-detached house with adequate insulation levels could be rewarded with £1,000 a year and lead to savings of £200 per year if used instead of heating oil.
The heat incentive could help thousands of consumers who are off the gas network lower their fuel bills and gain a cash reward for greening their heating supply.
Details of funding for the scheme will be published in the Budget 2010.