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

Feed-in tariff
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