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The "Feed in Tariff" or "FiT" for short (also known as the "Clean Energy Cashback Scheme") was launched in April 2010. Under this scheme, anyone owning solar panels will receive a fixed sum (which is adjusted to take account of inflation) for each unit of electricity they produce, guaranteed for 25 years. You will also receive a minimum price for each unit of solar electricity that is sold to the grid.  For householders, this income is tax free!

The scheme aims to provide a 5-8% return on solar installations (this obviously dependes upon how much you paid for your system).  After this point, you will continue to be paid for the electricity you produce at the fixed rate, making installing solar panels an extremely attractive long-term investment.

In the UK, a standard 2 kWp system will produce around 1600 kWh of electricity each year.  If this was installed before April 2012, it would earn a minimum of about £380 per year, every year for 25 years, assuming that no solar electricity is sold to the grid.

As you’re generating your own electricity, you will also save on the electricity that you would otherwise buy through the grid, electricity which is going to become more and more expensive. The total annual saving for an average system should be more than £580.

DECC announced a review of the FIT scheme, which commenced on 7 February 2011.  For domestic scale systems. we have been told that unless the review suggests otherwise, systems commissioned by 1 April 2012 will attract new rates which could be lower than what is currently on offer.  So it’s time to get a move on.   

For more information on the FiT, click here.

greentomatoenergy financing
The capital cost of installing a large scale solar PV installation can be very high. Because of this, greentomatoenergy has come up with a finance product to take the pain away from funding this initial capital outlay, which is primarily aimed at large users of electricity. Provided that you fulfil certain criteria, we will find funding for the system and you can benefit from receiving low-cost, renewable energy.

Contact us now to find out whether you or your business might be eligible for our finance package.