The highly anticipated solar “Feed in Tariff” (FIT) came into effect on the 1st April 2010. This scheme means that utility companies are obliged to make payments to individuals, communities or companies that generate their own electricity.

The scheme guarantees a minimum payment for each unit of electricity produced as well as a separate payment for any excess energy that is not used in the building and is sold to the grid.

Key benefits of the UK feed in tariff

1) Feed in tariff – For every unit (kWh) that is produced you are paid directly by your utility company. For normal householders the rate is currently 41.3 pence / unit which is about three times what you would pay for a unit!

2) Export – Whatever you don’t use in the house can be sold back to the grid for a minimum of 3 pence per unit (kWh).

3) Energy Bills Cut – Any energy that generated by the PV system can be used in the house to replace electricity that you would normally have to pay for.

Key financial benefit

The following example, from the Energy Saving Trust, demonstrates how much an average 2kWp (16m2) system could earn:

• Feed in Tariff will produce about £700 per year
• Export Tariff can save you about £25
• Energy Bills could be cut by £110

Total savings £830 / year.