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Nova Construction
& Civil Engineering

Feed-in Tariff

Introduced under the Energy Act 2008 and effective from 1st April 2010, the Feed-in Tariffs (FITs) scheme (also known as the Clean Energy Cash Back scheme) encourages small-scale (less than 5MW) low carbon electricity generation; particularly by organisations, businesses, communities and individuals who have not traditionally engaged in the electricity market. This will allow many people to invest in wind and solar photovoltaic (PV) technologies, in return for a guaranteed payment for the electricity they generate and export.

The feed-in tariff, as detailed below, is effective from 1st August 2012:

Band (kW)

Standard

generation

tariff (p/kWh)

 <4kW (new build) 16.0
 <4kW (retrofit) 16.0
 >4-10kW 14.5
 >10-50kW 13.5
 >50-100kWh 11.5
 >100-150kWh 11.5
 >150-250kW 11.0
 >250kW-5MW 7.1
 Standalone system 7.1

Determining how much you will earn from a solar photovoltaic (PV) system is dependent on a number of variables including the number and type of solar panels used. Although it is not possible to determine exact figures, it is possible to get a very good estimate based either on the rule of thumb approach or the government’s Standard Assessment Procedure (SAP).

The rule of thumb approach indicates a 1kWp system will produce between 750kWh – 850kWh per year. An average 2.2kWp system would therefore be expected to generate at least 1,650kWh a year.

SAP calculates as follows:
Size of system x 80% (efficiency) x Annual Solar Radiation/kWh/m2 (see table below):

Annual Solar Radiation / kWh / m2

 

Orientation of Collector

Angle

South

SE / SW

E / W

NE / NW

North

Horizontal

961

30o

1073

1027

913

785

730

45o

1054

997

854

686

640

60o

989

927

776

597

500

Vertical

746

705

582

440

371

A SE facing roof at a 45o angle would be expected to receive 1,054 kWh.
Based on SAP, a 2.2kWp system would generate: 2.2 x 80% x 1,054 = 1,855kWh.

The two figures are not too dissimilar but does highlight, with a little scientific knowledge, the ability to more accurately forecast a system’s capacity to generate power and money.

To calculate what a 2.2kWp system will earn from the feed-in tariff: 

FiT income

Est. annual kWh x 21p/kWh =

1,855 x 21p =

   £389.55

 Electricity sold to grid

Est. annual kWh ÷ 2 x 3p/kWh =

1,855 ÷ 2 x 3p =

£27.83

Reduction in bill

   Avg. annual usage ÷2 x 13p/kWh =

3,000 ÷ 2 x 13p =

£195.00

Total amount earned / saved =

£612.38