Solar Blog

Homes that have solar panels installed to provide clean, efficient energy will soon benefit from an increase in the amount paid for the electricity that they generate.

The Feed –in Tariff (FIT) scheme was introduced in April 2010 by the Department of Energy and Climate Change to encourage small scale production of low carbon energy.

The current feed-in tariff, or rate paid for electricity that is generated, regarless of whether it is used locally or fed back into the National Grid is 41.3p per kilowatt-hour (kWh). However, from April 1st, this rate will increase to 43.3p per kWh.  This change incorporates the expected rise in the Retail Price Index (RPI), and applies not only to new customers but to homes already fitted out with solar panels.

It is hoped that in light of spiralling costs of fuel that have recently hit UK households and increasing environmental awareness, this will encourage more property owners to opt for solar panel installation.

The tariff is obtainable through electricity suppliers, and is designed to guarantee an income for households fitted with small-scale photovoltaic (PV) systems. It is exempt from tax, and applies for 25 years after the system is fitted by solar panel installers. The payments are designed to increase in line with inflation, and the average property can expect to see a return on investment of around 12 per cent once the new rate takes effect. This is an improvement of 30 per cent on the 9 per cent rate of ROI which was normal a year ago.