Solar Feed in Tariffs - the 'Clean Energy Cashback' scheme

The government has announced a Feed-in Tariff for electricity generated from renewable sources - including solar panels.

What is a feed in tariff?

A feed in tariff is a fairly simple subsidy mechanism. For every kWh of electricity you generate from solar panels installed on your roof, the government will pay you a fixed sum of money. It doesn't matter if you use the electricity in the home yourself, or sell it to the national grid - although where you do sell it you will also get some income from the sale of the electricity itself.

How much are the payments?

The press release on feed-in tariffs lists the payments as 41.3p per kWh for PV arrays less than 4kW retro-fitted to old buildings, and 36.1p per kWh for systems on new buildings, or larger systems on old buildings up to 10kW. The tariffs for systems larger than 10kW are slightly less.

Will it pay for the cost of installing the panels?

Almost certainly - although how long it will take to pay back will depend on a large number of factors, such as shading and orientation of the array, and the installation cost - which can vary significantly depending on your house. However, a well designed system using off-the-shelf components can often pay for itself in 5-10 years. If you have details of a system you have been quoted for, you might like to try our Feed-in Tariff calculator, which gives an estimate of the likely payback period.

Does it work elsewhere?

Yes. Germany has around 200 times the installed capacity of solar panels that the UK has - an expansion driven entirely by the feed-in tariff the German government brought in.

I'm interested. What should I do?

Get in touch! We can give you a good indication of how much a system is likely to cost, and put you in touch with reputable installation companies who can do the work for you.

• Make an enquiry
• Connecting to the grid
• Learn about the Microgeneration Certification Scheme
• Try the Feed-in Tariff calculator