Feed in Tariff - Clean Energy Cash Back Scheme
The clean energy cash back scheme is designed as an incentive for energy producers to move away from conventional fossil fuels to renewable energy sources.
It is a government legislation which guarantees a fixed premium rate for renewable electricity generated by your PV (Photovoltaic) system. This means that the system owner is paid for all electricity generated, whether used or not. Any unused electricity will be sold back to your electricity supplier via an export tariff.
The UK government is committed to reducing its carbon emissions through the adoption of renewable energy sources.
It is this fixed tariff paid by the utilities which makes renewable energy an attractive prospect for your home as it guarantees you a return over a long period.
The government announced the final details of the proposed new feed-in tariff to commence April 2010 for microgeneration from solar photovoltaics. The proposed new tariff will pay for all energy generated by your system, irrespective of if you use it yourself or sell it back to the grid.
The amounts paid are in addition to any saving you will make by purchasing less electricity from your supplier and any income you earn from selling your surplus power to your electricity supplier.
The rates that have been announced are significantly higher than previously proposed. The feed-in tariff will be set at 41.3p/kWh for a retrofit solar PV installation <4kwp and these rates will be index linked to inflation over the life of the scheme. Systems greater then 4kw and new build rates will be subject to a reduced rate, sill maintaining a 5 – 8% ROI.
It was confirmed that there will be no income tax for home owners on revenue from the feed-in tariff, providing the energy generated is used mainly by your own property.
To 31/3/11 |
To 31/3/12 |
To 31/3/13 |
To 31/3/14 |
To 31/3/15 |
To 31/3/16 |
To 31/3/17 |
To 31/3/18 |
||
Pv |
<4Kw new build |
36.1 |
36.1 |
33.0 |
30.2 |
27.6 |
25.1 |
22.9 |
20.8 |
Pv |
<4kW retrofit * |
41.3 |
41.3 |
37.8 |
34.6 |
31.6 |
28.8 |
26.2 |
23.8 |
Pv |
>4-10kW |
36.1 |
36.1 |
33.0 |
30.2 |
27.6 |
25.1 |
22.9 |
20.8 |
Pv |
>10-100kW |
31.4 |
31.4 |
28.7 |
26.3 |
24.0 |
21.9 |
19.9 |
18.1 |
Pv |
>100kW-5MW |
29.3 |
29.3 |
26.8 |
24.5 |
22.4 |
20.4 |
18.6 |
16.9 |
Pv |
Stand alone |
29.3 |
29.3 |
26.8 |
24.5 |
22.4 |
20.4 |
18.6 |
16.9 |
- Retrofit means on a building which is already occupied
- N.B Once you have received your tariff this remains constant for 25 years, and the chart shows the tariff value for the start dates above
The Tariffs and how they work
You want to reduce your carbon footprint and your energy bills, become more self-sufficient in energy, and earn some extra income. The Feed-In Tariffs are a new Government-backed measure to make it worth your while to produce renewable electricity. There are three ways that the Tariffs help you make money from generating your own energy:
The Generation Tariff
Earn a fixed income for every kilowatt hour of electricity you generate and use in your property.
The Export Tariff
You earn an additional fixed income for every kilowatt hour of electricity you generate and sell back to the grid.
The bit you still buy from your electricity supplier
When you can’t generate enough electricity for your needs (when the wind don’t blow and the sun don’t shine) you buy electricity from your utility company at the normal rates BUT it’ll be much less electricity than you currently buy.
