A Brief Explanation of Feed in Tariff Rates
There is an old saying first attributed to Daniel Defoe in 1726 that states “Things as certain as death and taxes, can be more firmly believed.” The point is, there is little that we can earn or purchase that doesn’t come with built in taxes. However, government grants are immune from taxation which is why the Feed in Tariff rates are such a boon as they are not taxed, with one exception and that is on businesses. Whilst they aren’t taxed on what they earn for the generation of electricity, they are taxed on what they export. This is the only time the Feed in Tariff VAT is exercised and only on businesses that are VAT registered. Nonetheless, domestic UK Feed in Tariff rates are not taxed, neither for the generation of electricity or the exportation of it.
Domestic Feed in Tariff Rates UK
In the UK, domestic Feed in Tariff rates are said to provide approximately half of what the average household spends on electricity. Of course this varies based on the size system and the amount of electricity that is being used, but on an average, the right system should be able to generate half of the electricity used by any given household. Current Feed in Tariff rates for domestic systems are set at 41.3p for electricity generated with a photovoltaic system installed on existing buildings and 36.1p per kWh for those installed on new builds. On either type of building the export Feed in Tariff rates UK are 3p per kWh for electricity fed back into the grid. None of those tariffs are taxed.
How Can I Calculate What I Can Expect to Gain From the Feed in Tariff?
If you want to know how much you can expect to earn through the Feed in Tariff scheme you can utilise a small software programme which can be found online at many solar installation company websites. A Feed in Tariff calculator basically asks for certain information such as the size of your system and the average kWh you currently purchase. Based on figures you plug into the online form, you can calculate a pretty close approximation as to what you will be earning through the FIT scheme. Keep in mind that the calculations are based on information that you provide and the end results may be different once a solar PV energy system is installed at your home.
Any questions you may have on Feed in Tariff rates can be answered in a few ways. Whilst you could check on government websites such as Ofgem, sometimes it is just easier to speak with a live human being because finding the information may take a bit more time than you have. New Energy Futures has more than 50 MCS certified solar installers on staffs that are current with the latest technology as well as with the latest Feed in Tariff rates. Simply call 0844 774 1407 to speak with a knowledgeable representative today. If you are interested in participating in FIT and having an MCS certified solar energy system installed we would be happy to meet with you at your location for a free no obligation assessment of your energy needs.
