Financial Incentives

What is the feed-in-tariff?

The feed-in-tariff is the system of financial rewards given to businesses and individuals who generate electricity using solar photovoltaic panels.

How much is the feed-in-tariff worth? 

The feed-in-tariff varies depending on the type technology used, the size of system built and the type of building the installation is carried out on. The tariff rate is split into two portions: Generation and Export. The generation rate is applied to every unit of electricity your system generates. This is measured using a generation meter connected to your system.

On top of this the system owner gets a tariff for every unit they export to the national grid. Currently this is 'deemed' by most energy suppliers because they are reluctant to invest in the meters to measure the production. It is deemed at 50% of the total electricity generated. 

On top of this there are savings on the electricity you use in your home while you are generating. This is estimated at 50% but varies greatly by household. These savings are made at the rate at which you pay your electricty bill - approximately £0.14- £0.17 per kWhh. 

The bonus is, this income is tax-free for individuals. 

Click here for a case study of how the tariff works in practice 

Current tariff levels are shown below: 

System size

Installations completed before 1st January 2015 (p/kWh)

Installations completed between 1st January and 1st April 2015 (p/kWh)

          0-4kW

14.38

13.88

4-10kW

13.03

12.57

10-50kW

12.13

11.71

50-150kW

10.34

10.34

150-250kW

9.89

9.89

250kW-5MW

6.38

6.38

Export tariff

4.77

4.77

How long is this tariff paid for?

The feed-in-tariff is paid for 20 years.  The tariff level will increase with inflation.
 

Who pays for the feed-in-tariff?

Contrary to popular to belief the real answer is Everyone. The feed-in-tariff is administered by the big six energy companies and is funded by a levy on everyone's electricity bills. So if you're not benefitting from the feed-in-tariff you're technically losing out.
 

Who qualifies for it?

To qualify for the feed-in-tariff, an installation must be carried out using MCS approved products by an MCS approved installer such as energy jump™ and be registered to receive the tariff. 
 

What does MCS stand for?

Microgeneration Certification Scheme. This is a government approved quality management scheme which aims to maintain high standards in the renewables industry. Installers are assessed for technical and administrative competance on an annual basis. To find out more visit www.microgenerationcertification.org.