Feed-In-Tariff - Solar Photovoltaic
beginning of the Feed In Tariff scheme in 2010 the number of solar
technology installations has almost doubled year on year. More than
125,000 business and homeowners have taken advantage of the
Any property with retrofit or new build solar technology
installed with a capacity of up to 4KW, will currently recieve
15.44 pence p/Kwh with an export rate of 4.64 p/Kwh. This tariff
will be in place until the 1st of July 13, a review of these rates
will then take place. All properties with an
Energy Performace Certificate below D rating currently recieve the
lower tariff of 7.1 pence p/Kwh with an export tariff of 4.64
ongoing cuts to the Feed in tariff together with system prices also
falling dramatically, experts are predicting high demand for solar
panel technology installations over the coming
Any subsequent changes to the Feed in tariff from July 2013 will
not affect homeowners who currently have solar technology installed
in their households.
RHI scheme & VAT
The Renewable Heat Incentive Scheme (RHI) which is also referred
to as "Clean Energy Cash Back" is due to be introduced in two
phases starting July 2011 subject to final confirmation by the
coalition government. It will initially guarantee fixed payments
for renewable instillations, followed by long term payments from
Phase 1 (available from July 2011) - RENEWABLE HEAT INCENTIVE
(RHI) Premium Payment.
This is called the "RHI Premium Payment" and has been available
to Circa 40,000 householders in Great Britain since July 2011. This
funding has now been extended until spring 2014.
RHI is designed to provide financial support that encourages
individuals, communities and businesses to switch from using fossil
fuel for heating, to renewables such as wood fuel.
Expected payments will be
- Solar Thermal - £300/unit
- Air to Water Source Heat Pumps - £850/unit
- Biomass boilers - £950/unit
- Ground Source Heat Pumps - £1,250/unit.
recipients of this payment will need to ensure that:
- They have a well-insulated home based on its energy performance
- They agree to give feedback on how the equipment performs.
- Further guidance will be available shortly once announced.
Phase 2 (available from Spring 2014) - RENEWABLE HEAT
People in receipt of the Renewable Heat Premium Payments will be
able to receive long term RHI tariff support once these tariffs are
introduced, as will anybody who has installed an eligible
technology since 15th July 2009.
These tariff payments will work alongside other Government
energy efficient schemes, such as, Green Deal.
5% VAT incentive
To encourage the installation of energy saving products the
Government has applied a VAT incentive. This reduces the VAT
applied to residential installations (in existing buildings) to 5%
- Solar thermal & PV panels
- Ground source heat pumps
- Insulation for walls, floor, lofts, roofs, pipes
- Central heating and hot water system controls, timers,
thermostats and thermostatic radiators
- Fixed draught stripping around windows, doors and loft
- Wind and water turbines
- Micro combined heat and power units
- Wood-fuelled boilers
The 5% rate does not apply if the energy saving product is sold
on a supply-only basis. Installation of these products in new
buildings is zero-rated. For further information, visit www.hmrc.gov.uk.