The Feed-in-Tariff (FiT) rate of 16 pence per kWh for 20 years is valid from today the 1st of August. Despite cuts in the Feed-in-tariff, it still provides about your financial return over 25 years. And since solar panel prices have dropped significantly in the last year, your return on investment is just as good now as it was on earlier Feed-in-Tariff rates.

Feed-in-Tariff: 16 pence and finally stable

For every kWh generated by your solar panels you will receive the Feed-in-Tariff, which is tax-free, and will rise in line with inflation. The current FiT rate is 16 pence per kWh and is valid for 20 years. Larger systems will receive a slightly lower rate of 14.5 pence. The Feed-in-Tariff is expected to be stable (finally, after many boom-bust cycles) and will be slowly cut from November 2012 in the following way: (see Feed-in-Tariff graph for overview):

• August: Feed-in-tariff of 16 pence (up to 4kWp) or 14.5 pence (4-10kWp) or 7 pence (if EPC less than D) valid for 20 years
• November: Feed in tariff drops by 3.5% every three months from November. This could increase towards drop of 7% or even 14% in case of high consumer demand.

Feed-in-Tariff payments are still half of your financial return

The Feed-in-Tariff is still the largest component of your financial return. This is illustrated for year one through this simplified calculation of the total return per kWh generated:

• Feed-in-Tariff: 16 pence (for each kWh generated)
• Electricity savings: 7.5 pence (assuming 50% used in home)
• Export savings: 2.25 pence (assuming 50% exported)

This clearly shows that  despite the cuts the Feed-in-Tariff payments still account for over half of your financial return. And due to large price drops of solar panels, your financial return is better now than during many previous months at higher Feed-in-tariff rates.