Feed in Tariff

NacNac

Hi

I have had a visit of a company to quote me for the installation of PV and the return on investment.

My understanding was that if your panel generates let say 100 units of electricity and you consume 40 units, the rest (ie 60 units) will go to the grid and you get paid the 60 units to are technically saling.

However this company told me otherwise and actually wrote in their quotation.

Under the FIT you get paid for every unit of electricity that your system produces, regardless whether you consume, export or sell the generated power.

I understand that if my system generate 100 units (whatever unit that is), and I consume 40 units, I am still paid for 100 units. So not only I am paid for all my generated electricity but also I do not need to pay for 40 units that I have used from my panels.

It seems that I will be winning twice. I will be buying less electricy but I will also be paid for the electricity I will not take from the grid


Is that correct ?

Thanks and best regards

mac2008

Yes that is correct. You receive the FiT for total generation regardless whether you use it or it is exported. You also get paid a lower export tariff for the 50 percent they assume (deem) you export again regardless of whether you actually export 50%

theboylard

mac2008 said it much simpler than my nearly 20 minutes of keyboard bashing!!

The seriously reduced part:

For example, you generate 100 kWh at current rates.
You will be paid for 100 x 14.36p = £14.36
You will be paid for 50 x 4.77p = £2.38

Plus, any electricity you generate and can use in the house will be used before importing from the grid.
This is the hidden saving that a few unscrupulous outfits make ridiculous and massively inflated claims about. Treat with caution.
The figures bandied about here suggest a saving of £150/year is not unreasonable.

NacNac

Thank you mac2008 and theboylard for your replies.

I still find surprising that I am paid also for what I am using but so be it

Ectophile

NacNac wrote: »

Thank you mac2008 and theboylard for your replies.

I still find surprising that I am paid also for what I am using but so be it

The FIT is intended as a subsidy for carbon-neutral generation. You may be using the electricity yourself, but that means you are not using fossil-fueled power.