Feed In Tariffs

The Government announced on 1 February the final details of the proposed new feed-in tariff from April 2010 for microgeneration from systems like small wind turbines and solar photovoltaics. The proposed new tariff will pay for all energy generated by your system, irrespective of if you use it yourself or sell it back to the grid. The amounts paid are in addition to any saving you will make by purchasing less electricity from your supplier and any income you earn from selling your surplus power to your electricity supplier.

The rates that have been announced are significantly higher than previously proposed:

The feed-in tariff will be set at 41.3p/kWh for a typical domestic scale solar PV installation and 26.7p/kWh for both of the small wind turbines that Segen sells. These rates will be index linked to inflation over the life of the scheme.

It was confirmed that there will be no income tax for home owners on revenue from the feed-in tariff, providing the energy generated is used mainly by your own property.

The feed-in tariff will be effective as of the 1st April 2010, but all systems commissioned from July 2009 onwards will qualify for the additional income from the 1st April 2010.