Solar energy is great for generating electricity and reducing your energy bills, it is also a fantastic investment.
A domestic solar panel system can provide a high return on your investment, normally outperforming the rate of interest offered by high street banks.
Incentives for renewable energy systems are index-linked and guaranteed for up to 20 years, ensuring that you receive a guaranteed yield year-on-year from simply generating your own electricity.
The Feed-in Tariff – how it works
The Feed-in Tariff (FIT) is a government backed scheme to encourage homeowners to generate electricity and help the UK reach its carbon emissions targets. FITs offer payments to homeowners for energy produced from renewable energy sources like solar power.
Any approved installation comes complete with a solar generation meter. The meter records the amount of electricity generated by the solar panel system. It is also used to calculate your FIT payments.
- FIT payments are tax-free and index-linked for 20 years from the date of installation.
- An additional saving is made as each unit generated by the system and used within the home is one less unit of electricity purchased from your supplier.
- A payment is received for the amount of energy generated by the solar panel system.
- A further saving is made by the exporting of any excess electricity generated back to the National Grid, for which the homeowner receives payment.