What is happening with Solar Energy?
The 'Feed-In Tariff' or 'Clean Energy Cash back scheme', is a newly introduced government backed 25 year fixed term payment scheme to homeowners and businesses that can generate their own renewable energy. Payments are made to in 2 ways-
Generation Tariff- up to 21p per unit is paid simply for making the solar energy whether you use it or not.
Export tariff- additional payment for any excess energy you produce and sell back to the grid for 3.1p per unit, total export payment 24.1p.
All of the payments are tax free income and are linked to inflation (index linked) for 25 years!
In addition to this, the solar energy you produce can be used in the home/office, meaning that you will see a huge reduction in your electricity bills.
Why is it happening?
The UK has signed into the same treaty that was so successful in turning Germany and many other European nations into advanced renewable energy generators. In order to assist in meeting the UK’s binding commitment to having 15% renewable energy output by 2020, the UK government have passed an a Act of Parliament to run these financial incentives to the UK public and businesses who can play a vital role in achieving this.
How can you benefit?
Solar PV technology is now so advanced that it operates on daylight as opposed to direct sunlight alone. This has made Solar PV a practical investment in the UK for the first time.
Under the feed in tariff, the average UK house can generate enough electricity to earn a £700 annual income from solar as well as savings of around £200 on their energy bill; all of this from an investment of only around £10,500 giving an annual tax free return of over 10%.
It is not just Solar PV which can generate you a tax free income, please see the table below for a list of all of the renewable energy technology types which can generate you an income.
To view the Official Government documents for the Feed-In tariff please visit our Important Links and News page by clicking here. (figures have since increased with the first addition of inflation, April 2011)
Feed in Tariff