Feed in Tariff

Under the Government’s Clean Energy Cashback Scheme, energy suppliers are required by law to pay a tariff to homes and businesses generating their own electricity. To be eligible for the Feed-in Tariff, solar PV panels must be installed by a MCS accredited company, and the products used must also be MCS accredited.

We’re happy to explain the Feed-in Tariff to you and we’ll even show you how to fill in the paperwork.


How the Feed-in Tariff works.


Generation tariff – a set rate paid by the energy supplier for each unit (kWh) of electricity generated. This rate will change each year for new entrants to the scheme, but if you install solar panels now, your tariff is guaranteed for 20 years!

Export tariff – you receive a further 4.64p per unit (kWh) from your energy supplier for each unit exported to the electricity grid. i.e. when it is not used on site.

Energy bill savings – you make savings on your electricity bill because generating electricity to power your appliances means you don’t have to buy as much electricity from your energy supplier. The amount you save will vary depending on how much electricity you use on site.
So for example, if the electricity being generated is greater than the electricity consumed by appliances at the time, no electricity will be drawn from the grid. The surplus will be exported to the grid for someone else to use. In this instance you will be paid 14.90p for every kWh you generate plus a further 4.64p for each kWh you export. You will also be saving x pence (average about 15p) per kWh as you won’t be paying your electricity supplier while consuming solar PV generated electricity.
If the electricity being generated by the solar panels is not sufficient to cover the needs of the appliances operating at the time, the grid will be used to top up. In this instance you will be paid 14.90p per kWh for the electricity generated and pay x pence per kWh for the electricity used from the grid.
The amount of electricity generated at any time depends on the size of your solar PV system, the orientation, the amount of solar irradiance and the time of year.

Current Feed-in Tariff rates for Solar pv (as of 1st July 2013):

Scale Generation tariff (p) Export tariff (p) Tariff lifetime (years)
<4kW (retro fit) 14.90 4.64 20
<4kW (new build) 14.90 4.64 20
>4-10kW 13.50 4.64 20
>10-50kW 12.57 4.64 20
>50-100kW 11.10 4.64 20
Stand alone system 6.85 n/a 20

The Feed-in Tariff is guaranteed for 20 years will rise with inflation (RPI) and is tax free.

Payback times Included in your written quote from us will be a breakdown of the expected payback time for your investment in solar panels. This breakdown will be specific to your proposed system and the expected electricity it will generate.

Why not try the Energy Saving Trust’s online calculator to see the payback times of different size systems? Click here »


A final word on the Feed-in Tariff The government has cleverly passed on the cost of the Feed in Tariff to energy suppliers. As suppliers are likely to increase costs to pay for this, those without solar PV will end up paying the Feed-in Tariffs of others, while those with solar PV will make greater savings as energy prices rise over time.

To discuss how you can benefit from the Feed-in Tariff, please feel free to contact us »

sussex marketing web design