Great returns in excess of 11% achievable with the revised Feed-In Tariffs - December 19, 2011

 

20 things you need to know about the revised Feed-In Tariffs.

 

  1. What are the Feed-in Tariffs?

The Feed-in Tariff scheme is a Government incentive to encourage people to generate electricity from renewable sources by offering financial support.

  1. How do I benefit from the Feed-in Tariffs?

You will be paid through your electricity supplier for the electricity you generate and use via a renewable energy system; this is called the Generation Tariff. You also be paid for any electricity that you do not use and that you export back to the national grid, named the Export Tariff. You also reduce your energy bills and protect yourself from future energy price rises as well as reducing your carbon footprint. By installing a solar PV system, you could typically achieve a return on investment in excess of 11%, over 3 times a comparable bond or cash ISA investment.

  1. What is the duration of the Feed-in Tariffs?

All the payments you receive for the electricity you generate are Government guaranteed for 25 years.

  1. How can I generate electricity from a renewable energy system?

The main methods of generating electricity from a renewable source are solar photovoltaic panels and wind turbines. Hydro power and anaerobic digestion are also other possible options.

  1. Can I benefit from the Feed-in Tariffs?

The scheme is open to everyone in England, Scotland and Wales who install an eligible renewable energy system. Homeowners, businesses, landlords, schools and farmland owners can all benefit from the Government incentive.

  1. Can anyone install a renewable energy system?

For all installations, the installer and the equipment must be certified under the Government’s Micro-generation Certification Scheme (MCS).

  1. Why have the tariffs changed?

The cost of solar PV panels has fallen significantly and thus means returns available were far more than originally anticipated. Originally the plan was that solar PV systems would generate a rate of return of around 5-8% but in the circumstances of a much higher uptake than expected, there is now limited funding available and the possibility of a second decrease in the tariffs could become apparent.

  1. If I already have my domestic solar PV system installed, will I continue to receive 43.3p/kWh?

Anyone that has had their domestic solar PV system installed, commissioned and registered with their utility provider before the 12th December 2011 are guaranteed to receive 43.3p/kWh.

  1. What if my domestic solar PV system is scheduled to be installed between the 12th December and the 31st March 2012?

For anyone purchasing a domestic solar PV system and installs, commissions and registers with their utility provider between the 12th December and the 31st March 2012 will receive 43.3p/kWh up until the tariff rates change as of the 1st April 2012, as of this date you will receive 21p/kWh for the remainder of the 25 years.

  1. What if I install a domestic solar PV system after the 31st March 2012?

For all domestic solar PV systems installed after the 1st April 2012, you will receive 21p/kWh for 25 years, index-linked and tax free.

  1. What type of Return on Investment will I receive with my domestic solar PV system with the revised Feed-in Tariffs?

A typical 4kW domestic solar PV system can potentially generate around a 10% return on investment, in the right situation, on the current tariff which could decrease in 12 months.

  1. What earnings and savings can I expect to achieve with a domestic PV system?

A typical 4kW domestic solar electricity system generating an average 3429kWh/year could attract £720 per year, from the Generation Tariff, £206 per year in a reduction in electricity bills and £53 per year, from the Export Tariff (currently 3.1p/kWh) giving total earnings and savings of £979 per year, index-linked and tax free for 25 years.

  1. If I already have my commercial solar PV system installed, will I continue to receive 32.9p/kWh?

Anyone that has had their commercial solar PV system installed, commissioned and registered with their utility provider before the 12th December 2011 are guaranteed to receive 32.9p/kWh.

  1. What if my commercial solar PV system is scheduled to be installed between the 12th December and the 31st March 2012?

For anyone purchasing a commercial solar PV system and installs, commissions and registers with their utility provider between the 12th December and the 31st March 2012 will receive 32.9p/kWh up until the tariff rates change as of the 1st April 2012, as of this date you will receive 15.2p/kWh for the remainder of the 25 years.

  1. What if I install a commercial solar PV system after the 31st March 2012?

For all commercial solar PV systems installed after the 1st April 2012, you will receive 15.2p/kWh index-linked for 25 years.

  1. What type of Return on Investment will I receive with my commercial solar PV system with the revised Feed-in Tariffs?

A typical 50kW commercial solar PV system can potentially generate around a 10% return on investment, in the right situation, on the current tariff which could decrease in 12 months.

  1. What earnings and savings can I expect to achieve with a commercial PV system?

A typical 50kW commercial solar electricity system generating an average 42,765kWh/year could attract £6,500 per year, from the Generation Tariff, £2,566 per year in a reduction in electricity bills and £663 per year, from the Export Tariff (currently 3.1p/kWh) giving total earnings and savings of £9729 per year.

  1. What if my property is not energy efficient?

The Government are considering the option of stipulating that a domestic building must reach at least a ‘Grade C’ rating on an Energy Performance Certificate to receive the highest available tariff. The Department of Energy & Climate Change (DECC) indicate that alterations to a property to meet the required ‘Grade C’ could reach £5600.

  1. What do I do now?

Act now! Install an eligible renewable energy system now to receive the best Feed-in Tariff rates to avoid any potential costly alterations.

  1. How can I benefit from the Feed-in Tariffs?

Call BritishEco, with years of experience, we are best placed to advise you on your investment in renewable energy systems. BritishEco is also an MCS (Micro-generation Certification Scheme) certified installer, enabling our customers to benefit from the Feed-in Tariffs.

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