FIT In Detail

Solar Power & Feed In Tariffs (FITs)

The government has recently announced the new FIT rate as of April 2012 for consumers who install an MCS Accredited Solar Photovoltaic (PV) System: 21p per Kilowatt Hour (kWh).

Typically a domestic, roof-top 4kWpeak PV installation that can produce 3200 kW/h of electricity providing £855 of benefits per year in FIT tariffs and savings.

These payments are:

• Guaranteed for 25 years
• Linked to Retail Price Index (RPI) for those 25 years
• Tax-free income to consumer customers

These benefits are for the generation of electricity, so in addition to the FIT rate you would also benefit from:

1. Any of this electricity you generate & use (typically it’s about a quarter/third of the consumption for the average family) is yours for free (you’re probably paying an average about 14p/kWh currently)

2. Electricity you exported to the grid attracts 3p per kWh (deemed 50% of generation, on top of the FIT rate)

Overall the benefits could be around 9% per year of your investment (again tax free and RPI index linked) for the next 25 years. A very solid investment especially in today's market.

Verulam Electrics Limited Company No. 05823438 | Member No. 42117 Companies House No. 05823438 | Part-P Registration Member No. 35769