The Feed-in Tariff (FIT) has been designed to encourage the installation of small-scale, low carbon technologies. Solar PV is one of the technologies included within the scheme along with others such as wind and hydro.
Any individual or business installing Solar PV is entitled to claim on this scheme as long as their installation is carried out by an MCS registered company, such as Eveco.
Payments on the FIT scheme are tax free, index linked and guaranteed for 25 years under Government backed contracts. Once an installation is on the scheme the owner benefits in several ways:-
Feed in Tariff (FIT)
This name is quite misleading as this is actually a Total Generation Tariff, which pays out for all the power produced even if it is used for free in the building. A separate meter is installed in the property which counts all the electrical power produced by the Panels. This figure is multiplied by the Feed In Tariff (FIT) level up to 41.3p/kWh and this is paid to you by the Utility companies, but backed by the Government and enforced by OFGEM the electricity and gas regulator.
Export Tariff
Pays you for any electricity you don't use, which is exported to the national grid. This is on top of the Feed in Tariff. Solar PV systems ensure the house uses any power it needs first, then exports the surplus to the grid. This surplus is brought by the Electrical suppliers who will pay an additional 3p for it. Utility suppliers will either install a special meter to monitor the power going back into the grid, or assume it will be about 50% of all the system produces.
Free Electricity
You will also benefit from savings on your electricity bill, as you will be generating part of your electricity requirements yourself and hence buy less from your supplier. The system is designed so that the property will use all the available power from the PV first before it takes any from the grid.