VAT No. 596 11 33 31

Important News.

Feed in tariff to be reduced see link in latest news.

What is the Feed-in Tariff?
The Government launched the Feed-in Tariff on 1 April 2010, this is a premium payment for event unit of electricity that is generated by small solar PV systems. The Feed-in Tariff is tax free to domestic households and index linked to inflation for both commercial and domestic installations.

Who is eligible?
All PV installations under 5 MW, private and commercial are eligible. On the commercial side, the feed-in tariff will encourage photovoltaic (PV) installations among farmers, rural businesses, small and medium enterprises.

How much will I get from 1 August 2011?
43.3p per unit for systems up to 4 kWh (37.8p for new build)
37.8p for systems 4 - 10 kWh
Additional 3.1p bonus will be awarded for every unit of electricity exported.

How long will it last?
The Government has committed to pay the tariff for 25 years for photovoltaic installations.

Will the tariff change?
Once your tariff is agreed with the Government it will not decrease. It will increase each year in line with inflation (retail price index). The next feed-in tariff review in scheduled for 31/03/12. From 1/4//12, the Feed-in tariff will then drop each year for future installations. This is to encourage early uptake.

Why is the Government doing this?
The Government is way behind other European countries on commitments to reduce carbon emissions and to secure against future oil supplies. This is one way it can catch up. The UK currently produces 5.5% of electricity from renewable's, this is expected to rise to 30% to meet the 15% 2020 target for all energy.

Feed-in tariffs have been introduced successfully in many countries around the world, including Spain and Germany. It has encouraged huge growth in PV and created many jobs.

How will it be implemented?
Ofgem will administer the feed-in tariff. Suppliers will be responsible for paying the reward to their customers.

Is VAT payable?
VAT at 5% is payable on domestic installations. New Builds are often VAT exempt, commercial buildings will pay standard VAT rates at 20%.

Example(south facing 30 deg roof slope).
This is a feed-in tariff example for a 2.22 kWp installation of 12 panels:-

Cost of 2.22 kWp system incl 5% VAT and scaffolding - Estimated £9000

Electricity savings from the system output (assuming 50% used in house) if used in house - £133
Feed-in tariff on all generated electricity est 1906 kWh @43.3p - £825
Electricity exported back to the National Grid @3.1p - £30

Total saving plus income/annum - £988
Return on Investment - 10.9%
Payback Time - 9 years

As an MCS Installer, I am required to input details of all installations into a central MCS Database. The database generates an MCS Certificate with a unique certificate number that is sent direct to the customer. The customer will require this certificate to gain access to the Feed-in Tariff from their supplier.

Feed-in Tariff