The amount a solar panel system generates varies per installation but the larger the system, the more electricity it should generate and therefore the more it will earn over the 20 years from the Feed In Tariff (FiT). The scheme rewards homeowners who generate and use sustainable electricity, by paying for every kilowatt you generate and export on to the National Grid.
By installing Solar Panels, you could be eligible to apply for the Feed in Tariff scheme and could receive payments that are guaranteed for up to 20 years.
Through FiT, you could receive a payment for each unit of electricity that you generate. And by using this electricity to run your household appliances during the day, could mean that you’re actually making money while watching the TV.
To make the most out of FiT, you could export some of the surplus energy you generate, into the National Grid and get paid for it too. Although export payments aren’t as much as generation payments, it’s still a great way of making a little extra money throughout the year.
For more information on how to get FiT, don’t visit a gym, visit our “How much can I save with Solar” section for a list of estimated payment rates.
Next: Buying Solar Panels
Why is it changing?
The UK Government signed up to the Kyoto agreement to cut greenhouse gases and that 15% of all energy in 2020 will be from renewable sources. To encourage take up of renewable energy technologies, the government has subsidised technologies through financial incentives, such as the Feed In Tariff. To date the FiT scheme has been so successful that nearly all projections of deployment (both installation and capacity) in 2020 will be achieved this year. The consequence is the cost of the scheme: an expected overspend of 20% by 2020/21 (£9.1bn vs Levy Control Framework target of £7.6bn). Bringing the scheme costs back under control means a number of actions that will significantly reduce the number of installations for the remainder of this parliament. Deployment of solar PV <50kW this year averages around 20,000 per quarter, these proposals seek to reduce this to around 6,000.Close dialog window