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Feed-in Tariff (FIT)

The FiT is a collective term which covers everything related to the electricity your PV system generates and how much you get paid for it. Under the FiT there are two tariffs, the Generation Tariff and Export Tariff. FiT rates are linked to the retail price index (RPI), This means that the Generation tariff and the Export tariff will adjust in line with the inflation rate in subsequent years, So when inflation rises, so does your Feed in Tariff rate.

Generation Tariff

This is a set tariff through which your electricity supplier pays you a fixed amount for every unit of electricity your PV system generates for 25 years, whether you use this electricity or export it to the National Grid.

Export Tariff

This is the amount you earn in addition to the Generation Tariff for any electricity you don’t use and export back to the National Grid through your electricity supplier.

Avoided Costs

These are the savings you make on your electricity bill by not having to import electricity from the National Grid through generating your own electricity ‘on-site’.


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Solar photovoltaic (PV):

Solar PV panels are fast becoming one of the most attractive investments available in the united kingdom today.
Solar power works by collecting solar energy through photovoltaic cells which are made of sillicone and installed in panels. To harness this energy, placing these panels in areas that receive large amounts of sunlight works best, However on an overcast day, solar panels can still collect energy from the sun’s rays.
While it is true that the amount of energy that can be collected is certainly less than the amount that can be captured on a sunny day, the process of collection goes on any time there is any degree of sunlight at all.
Once the panels have collected this energy its passed through an inverter which converts it from direct current to alternating current.
This current is then passed through a generation meter which records the amount of energy you are producing, this total will be paid to you every three months by your energy supplier. (currently 43.3 pence per unit)
All electricity produced by your solar PV system is available for you to use free of charge.
Any unused electricity goes into the national grid, and you are credited a further 3 pence per unit.
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