Guide to the Feed-In Tariff for Commercial Premises
By installing solar panels your company will save money, make money and improve your green credentials.
You save money by reducing your electricity bill and by tax savings through your capital allowance.
You make money through quarterly Feed-in-Tariff payments to you, for the next 20 years, from your electricity provider and by selling electricity you produce back to the grid.
We provide you with a no cost and no obligation appraisal, quotation and after sales support.
How does it work?
The Government promotes the use of low carbon technologies and supports this by providing a financial incentive called Feed-in-Tariff (FiT). There is little bureaucracy involved, we handle most of this for you anyway and planning permission is only required in exceptional circumstances.
Under the FiT scheme you are paid:
- For energy you generate and use yourself this is called the Generation Tariff
- For energy you generate but do not use. You ‘export’ this electricity to the National Grid – this is the Export Tariff. The amount you export is estimated based on a percentage rate that is set by the Government and assumes that you will use 50% of the electricity you produce and export the other 50%
How much money will I get?
To receive your quarterly FiT and Export payments you will give your electricity company readings from the ‘Generation Meter’ that is installed with your solar panels.
The highest rate of FiT applies where premises have a commercial Energy Performance Certificate (EPC) rating of band D. Where your premises do not have a current EPC we would arrange for a survey to be undertaken early in the process although in our experience a band D is a fairly low threshold and most premises are rated at or above this.
An example to share with your accountant.
The following example uses system output from a recent installation at a medium sized commercial unit in Derby. The system size is 30.74kw (115 panels) with an annual output of 24,156kW. At current FiT rates this would earn an annual income in the first year of £1,108 from feed in tariff and £585 in exported electricity giving a tax free total income of £1,693. In addition to this income there will also be a saving from your electricity bill, this will depend on how much you are paying per kW for your electricity and how much daytime electricity you use. Depending on your usage you should expect to save between 50% and 100% of your electricity costs - we can profile this for you. The investment has a guaranteed income stream from FiT, Export Tariff and electricity bill savings of 20 years where the FiT and Export Tariff increase annually with RPI and you pay back the capital investment in around ten years.
We challenge you to find a better no risk capital investment - remember your income stream starts straight away and comes in the form of payments to you every quarter.
Good news from the Government!
Recent changes announced by the Department of Energy and Climate Change (DECC) will enable investors, from 2019, to move building mounted solar panels to a different location without losing Feed-in-Tariff accreditation. The main cost of a solar panel system is in the panels and associated equipment, the costs and complexity of the installation of the equipment are relatively small and so removal and re-installation if required would be straightforward.
Contact us for a no cost, no obligation quotation
Please contact us to arrange a brief site survey, the purpose of which is to take some measurements and a few details so that we can then produce a bespoke quotation to match your needs and circumstances.
Extract from a text submitted by the Managing Director of Ian Hazel Funerals Ltd to local newspapers
We used Solar Star Power Ltd. to carry out the installation of a 78 PV solar panel system. A company who I would always recommend as they delivered exactly what they promised and overcame some challenging on site problems which I am sure would have stumped a lesser company. They never gave up until the job was satisfactorily completed.