Since the beginning of the year changes to both the Feed in Tariff (FIT) and the Renewable Heat Incentive (RHI) have been implemented.
These changes stipulate the new pay back rates for any system that qualifies under either scheme.
The new FIT rate
stands at 13.88p per KWH (Killa Watt Hour(s)) for any property with an energy rating of a grade D or above. Just over 50% of U.K homes have the required grade to receive this pay back scheme. For any property under a grade D the FIT stands at just 6.38p per KWH.
Based on 4kw solar system fitted on a south-facing roof with average sunlight exposure, an average of 3540kwh per year would be produced. With the new FIT this would earn the owner a payment of £490. Now, assuming 50% of the self-generated electricity is used, this would save the owner £283 per year on energy bills. Finally the 50% of electricity fed back to the grid is paid for at a rate of 4.77p per kwh. This would mean the owner of the system receives a further £84 per year.
All this combined would mean the owner of the system would receive a payment of £858 per year for twenty years. This means by the end of the scheme a grand total of £17160 would have been generated from the FIT and savings in energy bills. This figure isn’t set in stone for every system of a similar size as the more electricity used the higher the savings thus the higher the overall total at the end of the twenty years
The RHI scheme
now pays for 10.98p per kwh for all heat generated. Owners still have to use RHI approved fuels and meet RHI air requirements in order to receive RHI payments. In a typical four bedroom house 25,000 kwh of heat will be produced per year. This means every year the owner will be paid a total of £2745. The scheme lasts for seven years, so, using this example at the end of the seven year period an overall total of £19215 will have been paid. All payments for the RHI are made quarterly.
Not all systems will receive these exact payments as the effectiveness of any systems relies heavily on the environment it is situated and the energy behaviours of the owner(s). All payments made through either scheme are also fixed rate payments so you can guarantee that your calculated payments will be the same throughout the duration of the scheme.
As with any installation our team at Green Pulse Energy will inform you of current rates and estimated paybacks for any system we propose and/or fit for you.