Feed in Tariff
Prior to April 2010 the main source of grants for householders was the Low Carbon Buildings programme. The final deadline for this was 31st March 2010.
From 1st April 2010, the government has introduced feed in tariffs, under which householders earn non-taxable income for generating electricity, regardless of whether or not they use it. For example a 'retrofit' system of less than 4 kWp will earn 41.3p for every kWh generated. This can then be used free - saving around 10p-15p relative to what it would have cost to buy peak rate from the local utility company. At this rate, every kWh generated and used is valued at 56.3p. If the electricity is not used, it can be sold back ('exported') to the grid for 3p a kWh.
The feed-in tariff is guaranteed by the government for 25 years, at the rate prevailing when you install the system. So every year until 2035 you can earn 51.3p per kWh generated. Note that if you install the system after April 2012, the feed in tariff will be nearly 9% lower, at 37.8p. In this case you will earn 37.8p per kWh generated every year until 2037.
Please note in order for your system to qualify for feed in tariffs, it must be installed by an MCS accredited installer. MyPlanet Ltd is an MCS accredited installer.
How does this work in practice?
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