All the information you need in regards to the FIT (Feed In Tariff)
Over time the feed in tariff has changed and changes will continue to happen so we have done our best here to help you understand the changes and let you know what will happen to the Feed In Tariff (FIT) over the next 6 to 12 months:
For installations completed by 31st March 2012
Up to 4Kw Solar PV domestic FIT will earn 21p per KWh generated
No energy performance certificate (EPC) required for highest tariff
Installations between 1st April and 30th June 2012
21p per KWh generated for properties with EPC grade D or better
9p per KWh generated for properties that can’t make EPC grade D rating or don’t wish to
Installations between 1st July and 31st September 2012
13.6p to 16.5p per KWh generated for properties with EPC grade D or better *
Installations between 1st October to 31st March 2013
12.9p to 15.7p per KWh generated for properties with EPC grade D or better *
Installations after 1st April 2013
11.6p to 14.1 per KWh generated for properties with EPC grade D or better *
* After 1st July 2012 the government has proposed linking new FIT rates to the number of Solar PV installations taking place in March and April,with 3 possible outcomes detailed below:
Option 1: if the total Solar PV installations exceed 200MW a new FIT rate of 13.6p per KWh generated would apply from 1st July 2012
Option 2: if the total Solar PV installations falls between 150 and 200MW the new rate of 15.7p per KWh generated would apply from 1st July 2012
Option 3: if the total Solar PV installations are less than 150MW we are likely to see a new rate of 16.5p per KWh generated, applying to installations from 1st July 2012.
As the FIT rate drops, the price of Solar equipment and installations continues to fall in-line, allowing customers to continue to receive a return on investment figure of 10% or better, with payback periods averaging 10-12 years. Leaving 13 to 15 years of tax free earnings to come from the Solar panels that are covered by a performance guarantee for 25 years.
These changes are part of DECC plans to secure the long-term future of the FIT by making sure it’s sustainable and that is benefits as many people as possible.
If you are thinking about getting solar pv installed then now is the time to get it installed. Don't wait for the rates to drop further there will never be a better time than now!