Monday 8th February marks the introduction of the new Feed In Tariff (FIT) rate for solar panels on domestic properties. The rates you receive are dependent on a few things including the size of your solar system, the solar panels you install as well as how energy efficient your home is. We thought we would give you the lowdown on everything you need to know with regards to these changes and what it would mean should you wish to invest in a PV solar system.
In order to receive FIT scheme payments, it’s important that you use MCS (Microgeneration Certification Scheme) approved installer. Once eligible, you can benefit from installing solar panels and the Feed In Tariff rate in three ways:
As of 15th January 2016, installations of domestic PV solar systems have fallen into the new ‘generation tariff’ rate which now stands at 4.39p/kWh. The export tariff and the energy bill savings remain exactly the same, so no changes there. The export tariff is 4.85p/kWh and these rates apply for PV solar installations between 4kW – 10kW in size. Reductions to the Feed In Tariff have coincided with the price fall on solar panels so the generation tariff is never fixed.
Absolutely not. The changes to the Feed In Tariff only apply to new solar panel installations. How much you receive for the generation tariff is based on the rate you received when the solar panels were installed.
It’s still very early days and we have only started to quote on new installations with under the new FIT because every installation has different requirements and different variables. Investment in solar panels has always been a long term investment – the 20 year lifespan of the panels. A typical residential installation can cost between £5,000-8,000 and based on a couple of site surveys completed recently, you can earn your investment in less than 10 years.
It makes sense to try to use as much of the free solar power you generate and we are currently speaking with a couple of clients with regards to energy storage batteries which have the ability to store energy during off peak times to be used in peak times.
For more information with regards to the Feed In Tariff or to discuss options for your PV solar system, please contact Simon Butt on 0116 270 1926