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PV Solar Panels and Feed In Tariffs UK, Generation and Export Tariff


PV Solar Panels and Feed In Tariffs UK, Generation and Export Tariff

Are you considering having PV solar panels installed at your home? The advantages of doing so can be considerable, which is why this industry has enjoyed superior growth over the past few years.

One of the main highlights of such an installation is the potential to generate more power than you actually need. In this situation the power does not go to waste. Instead you can sell it to the power companies, benefiting from the feed in tariffs that have been put in place by the UK government. While the amount the feed in tariff is set to may change in the near future, it is still worth finding out more about the tariffs that are available.

The following information will help you to understand what the generation and export tariffs are, and how you will benefit from them.

What is the generation tariff?

The name will give you the key to this type of tariff. When you have solar panels installed you will start generating your own electricity. The generation tariff basically means that an amount is agreed upon to be paid for the electricity you are able to generate. Once the electricity company knows the details of your installation, they will tell you what your generation tariff will be. This is a fixed rate tariff, i.e. it will not change in the future. It is fixed because your installation is also a fixed size.

What is the export tariff?

When your solar panels generate electricity, you will use that electricity in various ways in your own home. But if you generate more than you need to use, the excess energy will be transported to the national grid to be used elsewhere. Thus your export tariff is the amount per unit that you will be paid for any excess energy you generate.

Can the feed in tariffs change in the future?

As mentioned above, the generation tariff should always be the same. This will be arranged with your electricity company. However the export tariff could change, and indeed the UK government are trying to reduce it by about 50% at present. Currently it stands at 43.3p per kWh. But this could be reduced to 21p per kWh.

However this is down to the result of an appeal against a court case. If the government loses the case they are considering bringing in the reduction on the feed in tariff for new solar panel installations.

As you can see it is wise to find out as much as you can about the feed in tariffs as they relate to PV solar panel installations. They will have an effect on the amount of money you will make back each year, and thus the length of time it will take to recoup the investment you make in your solar panel installation. Keep an eye on the national news to find out more about any proposed changes to the tariffs so you always stay ahead.

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Feed in Tariff

Feed in Tariff Feed in Tariffs were introduced by UK Government in 2010. The scheme compels energy suppliers to pay you for the electricity you produce via PV solar panels - and sees you paid extra for any electricity you export back to the grid.

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