If you install PV solar panels on the roof of a new build house and generate electricity you will be entitled to claim the Government backed feed in tariffs for the next 25 years.
For every kWh of electricity generated you will receive 36.1p.
The electricity generated can be used for FREE. So if you are currently paying 12p per kWh for your electricity, the value of each kWh you use from your Solar PV system is worth 48.1p.
If the electricity is not used, it can be sold back (exported) to the grid for 3p a kWh. It has been agreed that most Feed-In Tariffs will pay 50% of the electricity generated rather than installing feedback metering.
The total average value for each kWh generated, assuming you currently are paying 12p per unit, is 49.6p.
Guaranteed investment for the next 25 years
The Feed-in Tariffs were introduced through and protected by the Energy Act. The Government is legally obliged to hit the EU's 15% renewable energy commitment by 2020 and the tariffs are an important means for achieving that.
Once your system is installed and registered, you will lock into the Feed-In tariff of 41.3p per unit. Each year the tariffs will increase by the Retail Price Index. You are guaranteed your investment will increase by the rate of inflation for the next 25 years.
Income tax exempt
The Government has stated that the Feed-In Tariffs will be exempt from income tax for domestic users. Companies will be subject to Corporation Tax on their tariff income depending on their profits.