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Feed In Tariffs or 'FIT' are an exciting prospect that came into force on 1st April 2010 and is a government backed incentive to make renewable energy more worthwhile.
For each unit of electricity you generate and use within your property, you'll receive a fixed TAX FREE income that rises with inflation for each and every kW/h you generate. The level of income is set by the government and is guaranteed for 25 years.
If you produce more electricity than you consume, the excess can be exported back to your electricity provider for an additional fixed income.
When you need more power than your renewable energy system can produce, you'll buy energy from your utility at the usual rate.
Looking at a typical household consuming 4,500 kW of electricity per year, it will return approx £800 in income tax free income that is indexed linked, with a reduced consumption of electricity at £150 to total an annual saving of £950 giving a payback of around 12 years (under ideal conditions).
Around £950 annually for approx £12000 invested is better than any banks can offer.
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| Wind Energy |
| Type of system |
Tariff (pence per kWh) |
Duration (years) |
| < 1.5kW |
34.5 |
20 |
| > 1.5 - 15kW |
26.7 |
20 |
| > 1.5 - 100kW |
24.1 |
20 |
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| Solar PV |
| Type of system |
Tariff (pence per kWh) |
Duration (years) |
< 4 kW, installed on
a new building before
occupation
|
36.1 |
25 |
| < 4 kW, installed on occupied building
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41.3 |
25 |
| > 4-10kW
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36.1 |
25 |
| Standalone, not connected to an occupied building
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29.3 |
25 |
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Grants for renewable
microgeneration
development
varies
across regions, contact
your
local council whether
you're
eligible for a grant.
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Renewable energy, Wind and Solar PV in
particular are proving a popular
investment amongst home owners
and businesses alike.
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Z1, a solar powered car developed by
ZeroPoint paints an exciting picture
of solar energy. Constructed
with monocystalline solar
cells as our solar
panels
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