Funding
Feed In Tariff (FIT) Payments
For a customer that has a 4 kW solar PV system fitted before April 2012 that generates 3334 kWh per year, of which 50% of units are used on site and 50% of units are exported, and who pays 12.5p per unit for mains electricity, the payments and savings they would make would be calculated as follows:
Generation tariff: |
3334 x 0.433 |
= £1443.62 |
Export tariff: |
1667 x 0.031 |
= £51.68 |
Value of electricity used on site: |
1667 x 0.125 |
= £208.38 |
|
TOTAL VALUE |
= £1,036 per year |
In considering the benefits of the feed-in tariff, it is also worth noting that the expected life of a PV system is greater than 40 years - so system owners will continue to benefit from their solar generated electricity for many years, long after the system has been fully paid for by the FIT payments.
