If you produce your own power, you can receive a guranteed remuneration in form of Feed-in Tariffs (also known as FITs). The tariffs have been introduced by the Government to help increase the level of renewable energy in the UK towards our legally binding target of 15% of total energy from renewables by 2020 (up from under 2% in 2009).
Power for your own consumption continues to be drawn from your local power supply utility at the usual tariff. The feed in tariff for environmentally friendly photovoltaic systems is higher than the consumption tariff. The main benefit of the Feed-In Tariffs is the generation tariff, which is paid for every kilowatt hour of electricity produced. The amount paid per hour is determined by the type of technology and the size of the system.
The Feed-In Tariffs scheme also provides two further benefits: an additional payment for surplus energy exported to the grid (this is called the export tariff) and a saving on energy purchased from your electricity supplier.
The Tariffs give three financial benefits:
A payment for all the electricity you produce, even if you use it yourself.
Additional bonus payments for electricity you export into the grid.
A reduction on your standard electricity bill, from using energy you produce yourself.
The Feed-In Tariffs are based on the electricity generated by a renewable energy system which is used in the property. There is also an additional bonus for any energy produced which is exported to the electricity grid. This means that you get paid more for the energy you don’t use than for that which you do which encourages energy efficiency. For an average three to four bedroom household installing a 2.7 kWp solar PV system that generate electricity, the Feed-In Tariffs would provide the following benefits:
The electricity generated would pay the homeowner £928 a year tax-free.
Remaining electricity costs would be reduced from £450 to £280: saving £170. Therefore the total benefit would be £1098 per year. This is based on an average use of 4,500 kWh of electricity per year and the installation of 2.7 kWp of solar PV panels.
Many who are building their own homes have recognised the benefits of generating power this way:
You make a visible contribution towards protecting the environment. The use of photovoltaic systems reduces the damage caused by emissions and protects natural resources.
The feed-in renumeration and various subsidy programmes make the investment worthwhile.
The property becomes more desirable and valuable.
Viessmann photovoltaic systems are designed to last for decades. Thanks to their simple operating principle, they are completely reliableand practically maintenance-free.