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Solar feed in tariff – A key benefit of a solar system

A quick overview of the government solar feed in tariff or FiT, also covering tax free solar investment.

The Feed in Tariff is one of the key benefits of installing solar panels and as part of a UK government legislation energy companies are required to buy renewable electricity at a fixed premium rate from you for the next 20 years.

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Make money with a Government solar feed in tariff

A feed in tariff (FiT) is a means for governments to set above-market rates for electricity generated from renewable sources. By obliging electricity utility companies to buy renewable electricity at a fixed price for a fixed number of years, renewable installations become cost effective for the installer.

From the 1st April 2010 someone fitting a typical 2.5kW photovoltaic solar system to an existing home, a payment of 12.92p per KWh generated, will be paid whether that electricity is exported or used by the home owner.

A further payment of 4.85p per kWh will be made for each unit not used and therefore exported to the grid. These tariff payments are guaranteed for 20 years and they are also index linked – i.e. they will rise in line with inflation. The income is also Tax free!!

*For further information regarding Government feed in tariffs in South Wales, please call us on 01792 879 697 or email