Government feed-in tariff
The government feed-in tariff incentives for installing a standard 4kWp solar system on your home are:
| What | Amount |
|---|---|
| Generation tariff | £3,462 |
| Export tariff | £2,078 |
| Total income from government incentives | £5,540 |
You also receive the following average savings on your electricity bill:
| What | Amount |
|---|---|
| Savings on electricity bills | £5,999 |
The total income and savings amounts to £11,539
Tax free income
Index linked – income increases with inflation
Your savings will be even higher if electricity prices increase
Almost risk free investment with return of 8% – much higher than existing savings rates
Assumptions
Standard 4kWp system
50% of the solar electricity will be used in your home and 50% exported
Cost of electricity from your electricity supplier is 14p per kWh
Panels facing south – surprisingly facing the panels east or west only reduces output by 15-20%
Panels pitch of 30 degrees – which matches the pitch of a typical UK property
Income and savings over the period of the feed-in tariff – which is 20 years
