Feed-in-Tariff

Generation tariff – a set rate paid by the energy supplier for each unit (or kWh) of electricity you generate. This rate will change each year for new entrants to the scheme (except for the first 2 years), but once you join you will continue on the same tariff for 20 years, or 25 years in the case of solar electricity (PV).

Export tariff - you will receive a further 3p/kWh from your energy supplier for each unit you export back to the electricity grid, that is when it isn’t used on site. The export rate is the same for all technologies.

Deemed export- Domestic FIT installations are likely to have their export deemed (estimated) at 50% in most cases until smart meters are rolled out.

Imports or Energy bill savings – you will be making savings on your electricity bills , because generating electricity to power your appliances means you don’t have to buy as much electricity from your energy supplier. The amount you save will vary depending how much of the electricity you use on site.

Imports or Energy bill savings – you will be making savings on your electricity bills , because generating electricity to power your appliances means you don’t have to buy as much electricity from your energy supplier. The amount you save will vary depending how much of the electricity you use on site.

• Annual electricity demand = 4,500 kWh
• PV System = 2 kWp
• PV annual generation = 1,700 kWh
• Generation tariff = 41.3p kWh
• Export tariff = 3p kWh
• Cost of imported electricity = 12p kWh
• Generation £702.10
• Export £ 25.50
• Avoided imports £102.00
• Total benefit £829.60

The tariff levels set out above apply to systems installed before April 2012. Systems installed after this will be subject to new lower tariff rates: The government proposes that the model incorporates annual ‘degression’ whereby the tariff level will reduce by a fixed percentage for systems installed in the future. Generators will continue to receive the same tariff rate for the 20 year period (25 years for Solar PV) as they did upon installation.

• The Generation Tariff is not fixed – it drops every year after April 2012!
• The Generation Tariff is set at 41.3p/kWh. By installing a solar electricity system before April 2012 you are guaranteed to be paid this rate for the 25 year lifetime of your system, tracked with inflation.
• The Generation Tariff will drop by 8.5% every year after April 2012. And the rate you come in at is the rate you pay for the lifetime of your system.
• PLUS as the FiT tariffs are indexed linked – linked to the Retail Price Index (RPI) as a measure of inflation - your investment in this green renewable energy technology will ensure you profit when global oil prices

Feed-in Tariffs (FITs) became available in Great Britain on 1st April 2010. Under this scheme energy suppliers have to make regular payments to schools who generate their own electricity from renewable or low carbon sources such as solar electricity panels(PV)

Basically in these times of budget cuts there is a real money making opportunity in schools in that school’s can use their South Facing roofs to

• Generate electricity for FREE
• Be rewarded at a Premium rate of 43p per KW produced
• Export Electricity back to the Grid for an Additional 3p revenue

• If you have installed Photo Voltaic technology, your system is less than 50kW, you have used an MCS installer, using MCS products and have a valid MCS certificate you are eligible.
• If your system is above 50kW, you have a been accredited by Ofgem and have a ROO-FIT Accreditation number
• If you have had a grant towards the cost of your installation, you have sought appropriate advice about whether it needs to be paid back.

• The amount you will receive for the amount generated will depend upon the type and size of technology you have installed.
• The guaranteed export price is set at 3p per unit exported. If you have a system over 500kW, please contact us to see whether we can negotiate a power purchase agreement.
• Metering requirements – If your system is less than 30kW, you do not need an export meter, we will estimate that you will use 50% of the energy you generate within your property and export the remaining 50% on to the electricity network.

A renewable energy system is tailored to your specific needs and therefore the costs will vary. This example shows how you could benefit annually by producing electricity using British Gas' Standard solar PV system

The current rates set by the Government mean you will be paid:

• 41.3p for every kWh you generate
• An extra 3p for every kWh you feed into the National Grid
• On average you will generate 1,428 kWh of electricity per year
• If you use 50% of the 1,428 kWh you generate, you can sell 50% (714 kWh) to the National Grid
• Generating your own electricity means you don't have to buy it from your supplier. You would normally pay us 11.453p per kWh if we supplied your electricity

As an example, a typical domestic solar electricity system, with an installation size of 2 kWp could earn around:

• 700 per year from the Generation Tariff
• £25 per year from the Export Tariff
• £110 per year reduction in current electricity bills

This gives a total saving of around £830 per year. This assumes 50% of the electricity generated is exported. The figure will vary depending on how much is exported.

FITs are now used in over 60 countries/states to incentivise uptake of small-scale renewables, The market took of with the introductions of FITs in 2000. In 2010 Germany is forecast to install 6GW of PV (the equivalent of 3 million installations on homes)

Tariffs are set taking into consideration the technology costs and expected electricity generation, with an approximate rate of return of between 5 percent and 8 percent for well-sited installations.

If you are a higher rate taxpayer, the return is equivalent to 13%, the best guaranteed return around

Based on a typical size (4 kWp) solar system on a south-facing roof in the UK costing around £16,000 installation cost :

The system should generate approximately 3400 units of clean electricity every year. The school will receive 41.3p for every unit generated resulting in an income of £1400 per year. Some of the electricity from the system will be used by the school instead of grid electricity, and the rest exported to the grid - If this is split 75:25, the school will get £331 of electricity savings and £25 of export income as well the £1400.

Resulting in a total of £1756 of income and savings per year !!!!!

These values are inflation-linked, so what the school receives will go up each year. The system pays back in about 10 years.

You will receive your payment from the your Electricity Supplier by personal cheque, on receipt of generation and export meter readings every quarter.

Energy Providers are obliged by the government legislation to buy the renewable electricity, the additional costs of which are passed onto the customers. The UK government’s Clean energy cash back scheme fixes an above market rate for utility companies to buy electricity from renewable energy producers.

It could therefore mean for example that if the retail price of fossil fuel electricity were 15p per kWh, then the rate for renewable electricity could be up to 60p per kWh. In this case, the 45p difference per kWh would be spread across every customer of the relevant utility company. It is this fixed tariff paid by the utilities which makes renewable energy an attractive prospect for investors as it guarantees them a return over a long period and has been highly successful at attracting investment where it has been implemented across Europe. Germany for example now produces over 14 per cent of its energy from renewable sources, something which has been attributed to the generous and comprehensive clean energy cash back system implemented by the German government.

The Future clean energy cash back system has already been in place in many states such as Germany, Israel, the US, Spain and Australia for some time now and has been instrumental in the success and growth of renewable energy operations there.

The tariff levels set out above apply to systems installed before April 2011. Systems installed after this will be subject to new lower tariff rates: The government proposes that the model incorporates annual ‘degression’ whereby the tariff level will reduce by a fixed percentage for systems installed in the future. Generators will continue to receive the same tariff rate for the 20 year period (25 years for Solar PV) as they did upon installation

Once we have checked you are eligible we will send you a Clean Energy Cashback contract. You will be paid quarterly, providing you supply us with regular meter readings.

All commercial buildings are required to be zero carbon by 2019. Public buildings have to comply by 2018. However, Schools Secretary Ed Balls said recently: "The Children's Plan goes a lot further and sets out our long-term goal that all new school buildings should be zero-carbon from 2016." The Zero Carbon target and taskforce looking at carbon reduction in schools were first announced in the Children's Plan published in December 2007.

Red, orange and yellow diagram

Where is it best to Install Solar Panels:

• Optimum output -Due south inclined to 35o
• Most pitched roofs will still generate 80% power when facing due east or west
• Important that the panels are not shaded as this will reduce output

The cost of a PV system may vary depending on how easy or complex an installation it is; the money made or saved will vary depending on location in the UK, how much you pay for electricity (we assumed 13p/unit) and how good a site it is for solar PV (ideally an unshaded, south facing pitched roof); electricity consumption patterns vary.

A solar PV system uses energy from the sun to generate electricity. It doesn't need sunlight to produce electricity - only daylight, even in winter. So you could be helping to lower your bills by reducing the amount of electricity you need from your supplier.

he cost of a PV system may vary depending on how easy or complex an installation it is; the money made or saved will vary depending on location in the UK, how much you pay for electricity (we assumed 13p/unit) and how good a site it is for solar PV (ideally an unshaded, south facing pitched roof); electricity consumption patterns vary.

No Planning Permission for P.V. renewable energy systems

• Permitted Development
• The system protrudes more than 200 millimetres beyond the plane of the wall or the roof slope when measured from the perpendicular with the external surface of the wall or roof slope
• It would result in the highest part of the solar PV or solar thermal equipment being higher than the highest part of the roof (excluding any chimney)

Note: Building Regulations apply to most installations of solar panels including other aspects of the work such as electrical installation.

• Planning permission is needed in a conservation/World Heritage Site if the PV system would be installed
• On a wall or roof slope forming the principal or side elevation of the dwelling house and would be visible from a highway
• On a wall or roof slope of a building within the curtilage of the dwelling house and would be visible from a highway

If the roof loading is increased by more than 15%, a structural assessment will need to be made of the roof to ensure it is capable of taking the roof load.

You don't usually need planning permission for most home solar technology systems, but check first with your local planning officer, especially if your building is listed, or is in a conservation area or World Heritage Site. If you're unsure, give us a call.

On 6th April 2008 the Government announced new "permitted development rights" to allow householders in most areas in the UK to proceed with solar PV, solar thermal, ground and water source heat pumps, and biomass installations without planning permission. The only exceptions to this are listed buildings, areas of outstanding natural beauty and conservation areas.

For more information see the Energy Saving Trust planning section. CLick Here »

Usually the natural elements (Rain & Wind) will do all the necessary cleaning. A solar PV system does not normally need servicing as it has no moving parts and the other components, such as cables and connectors, are designed to withstand environmental conditions. We suggest you routinely visually inspect your system though (from ground level only) and if you notice any damage, we're here to advise you.

We'll ensure your system is installed according to the latest electrical installation guidelines. We'll also advise your District Network Operator (DNO) that we've installed your system and deal with any paperwork.

Most conventional boiler and heating systems are compatible with solar heating. Your current system may not be compatible if you have a combination boiler with no separate cylinder. We will be able to advise you about this.

For safety reasons, the output of the solar technology system is automatically turned off when it detects a power cut. It automatically restarts when the mains power is back - so you won't need to do anything.