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Tariffs From April 1st 2010

From the 1st of April 2010 building owners who install solar PV and other low carbon electricity technology are paid for all the electricity they generate, including the electricity that they use.

The rate for retro-fitted installations up to 4kW is 41.3 pence per kilowatt hour (p/kWh), for new build 36.1p/kWh and for new and retro-fitted installations between 4kW and 10kW the rate is 36.1p/kWh. For installations between 10kW and 100kW the rate is 31.4p.

These rates are in addition to the savings on electricity bills. For surplus electricity not used within the building but fed back to the grid there is an additional 3p payment for every kilowatt hour exported. This is also index linked. Payments are linked to inflation and will continue for 25 years from the installation date.

For example, a typical 2.5kW solar PV installation could generate an income of up to £1200 per year as well as saving £200 a year on electricity bills (an approximate 12% to 14% return on the initial investment).

Current Tariff Levels

Technology Scale Tariff level (p/kWh) Tariff lifetime (years)
Solar electricity (PV) ≤4 kW (retro fit) 41.3 25
Wind ≤1.5 kW 34.5 20
Wind >1.5 - 15 kW 26.7 20
Micro CHP ≤2kW 10.0 10
Hydroelectricity ≤15 kW 19.9 20
 
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