What return on investment can I achieve as a domestic customer?
You can generate a great return on investment from installing a solar photovoltaic (PV) system at your property.
By installing Solar PV at your property you can generate a very high return on investment because you are applicable to receive the Feed-In Tariffs. For a typical 4kW Solar PV system you can currently receive 15.44p/kWh for every unit of electricity you generate at your home and you will also receive 4.5p/kWh for every unit you generate but you export back to the National Grid. You will also be reducing your current electricity bills substantially, potentially saving you hundreds of pounds each year.
A typical 4kW domestic system could attract:
£529 Feed-In Tariff payment
£247 Savings on your electricity bill
£77 From exporting to the national grid
Estimated returns and savings of:
£853 Annual savings
12.7% Initial tax-free return on investment
£22,094 Estimated earnings and savings over 20 years
The income you receive from the Feed-In Tariffs is completely tax free and index-linked to the Retail Price Index) and guaranteed for 20 years.
All properties will be required to meet an Energy Performance Certificate (EPC) rating of D or above to qualify for the full 15.44p/kWh rate, if your property is unable to meet the required standards, you will only receive 7.1p/kWh.
As of 1st November 2012 a system of degression applies to the Solar PV Feed-in Tariffs. The reduction in tariffs is in line with the uptake of the FIT scheme with an average tariff reduction of around 3.5% every three months, this could potentially be higher if there is a rapid uptake of Solar PV installations in the preceeding months.
The Feed-in Tariffs mentioned above are for Solar PV installations with eligibility dates between 1st February 2013 to 30th April 2013. The tariffs have remained the same as the previous quarter and will be assessed again before May 2013.