Government Solar-Income Incentives Explained
As we push on towards a low-carbon future for the UK, it’s reassuring to know that our government is fully behind it. In fact, they recently-introduced the Feed-in Tariff (FiT) scheme, allowing homeowners to receive a steady income for self-generated electricity.
That’s right: if you generate your own electricity, your energy supplier will pay you. This is called a feed-in tariff, and it’s proving a popular incentive for most homeowners who have installed solar panels onto their properties. It also applies for wind turbines and other renewable technology.
The scheme was introduced by the Department for Business, Energy & Industrial Strategy (BEIS), and is overseen by Ofgem.
In this blog, we’ll advise on how you can take advantage of the FiT scheme and potentially earn back the cost of your system (and then some).
The initiative works on a tariff basis, meaning that you’ll receive a set amount for each unit of electricity you generate (measured in kWh).
If your application is accepted, your amount will vary depending on the following:
• The size of your system
• The technology you install
• When your system was installed
• How energy-efficient your home is
There are three main benefits to be had from the initiative. These are as follows…
First, there’s the generation tariff, which is the most straightforward. The generation tariff literally means that you’ll receive payments for the electricity you generate. Once your application is accepted and your system is registered, your tariff levels are guaranteed for however long the tariff lasts (usually up to 20 years).
You’ll also benefit from the export tariff. This refers to the energy that you don’t use which as a result you have left over. Your energy supplier will pay you for this, so that nothing goes to waste.
Finally, there’s the overall savings on your energy bills. You’re sure to save money on your electricity bills because you won’t be paying your supplier.
Recouping Your Investment
Yes, you have to pay for your solar system, but with this kind of government funding, you’re almost guaranteed to recoup the investment. In fact, over a 20-year tariff, you could typically receive around £18k, depending on the rate of inflation and changes in electricity prices.
Get in Touch
Our solar energy systems are an investment for the future; they generate renewable energy and pay you back in the process. They are virtually maintenance-free and come with a lifetime product-and-performance warranty.
If you want to learn more about how you can benefit from the government solar-income incentives and the FiT scheme, fill out an enquiry form or give us a call on 0800 112 3110.