Tuesday, 27 July 2010

UK’s most generous Feed in Tariff rate unveiled

News & discussion from our LinkedIn group

Barry Nutley Viridis Energie Consultants

Ecotricity, the world’s first green electricity company, has confirmed that its new Microtricity initiative, based around the government’s ‘Feed in Tariff’ scheme, is to offer existing home generators the highest rate in the UK

the introduction of the "Feed in Tariff", and the "Renewable Heat Incentive" (in April 2011), do you think that these technologies make good financial investments?
A couple of links to help you:
http://www.viridisec.co.uk/2010/04/take-it-from-me-renewable-energy-is-worth-it/
http://www.viridisec.co.uk/2010/02/incentives-are-about-to-make-solar-thermal-a-financial-no-brainer/

John StobbsHi Barry
How does the Feed in Tariff work ?

1). The "FIT" element- In other words, the client will get paid up to 41.3p (for PV) for the electricity generated by the system, regardless of how it's used.

2). The "savings" element- In other words, the client will not pay their supplier for any electricity generated by the system that is used "onsite" (this is currently set at 50%, unless an additional "export" meter is installed).

3). The "export" element- In other words, the client will be paid for "exporting" any electricity generated, that is not used "onsite" (this is currently set at 50%, unless an additional "export" meter is installed, and is set at 3p/kwh, unless negotiated).

This is index linked, tax free (for domestic clients), and guaranteed for 25 years (for PV).

For example:
If the system generates 2000kwh/annum, and the client currently pays 10p/kwh, then the "payments" will look like this::

1). 2000 x 41.3p = £826
2). 1000 x 10p = £100
3). 1000 x 3p = £30

Total = £956 in the first year...

Hope this helps??

25 years from joining the scheme... But remember, the longer you leave it to join the scheme, the less per kwh you'll get paid, as the FIT element reduces..


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