REUK Feed In Tariff Calculator
REUK Feed In Tariff Calculator
Calculate the possible return on your investment with the new UK feed in tariff
solar | education | general | newsSince updating our
Feed in Tariff article with the latest information on the feed in tariffs on offer in the UK from April 2010, we have received emails everyday taking issue with my statement that "
if you are lucky enough to have £10-12,500 in the bank AND have a south (or nearly south) facing roof, you'll struggle to find a better financial investment than installing a PV solar array on your home. Therefore, to help to diminish the confusion out there about the financial returns possible, we've put together a simple
UK Feed in Tariff Calculator which should clear up most of the questions people have been asking.
It is not possible to predict
25 years into the future, but this calculator should give you more than a rough idea of whether you should invest in an array of
PV solar panels, or just keep your cash in the bank.
Simply enter the requested details below, click
calculate, and the calculator will work out your predicted state of affairs at the end of years 1-25 inclusive if you install the PV array rather than just keeping the money in the bank. The bottom right hand corner of each table gives the key figure to be compared: the money in your pocket at the end of 25 years.
UK Feed In Tariff Calculator
Notes
Here is a glossary of the table headings used above:
FIT - Feed in Tariff payment made at the end of each year tax free to homeowner. Note that the FIT will be increased in line with inflation each year.
E. Saved - Reduction in electricity bill thanks to
free electricity, i.e. electricity used immediately when it is generated rather than exported to the Grid. Calculator assumes the homeowner will invest this financial saving in their bank account each year.
Gross Int. - Gross interest paid at the end of the year on the bank account (gross = with tax not deducted).
Tax - The amount of tax deducted from the gross interest.
Net Int. - Net interest - i.e. gross interest minus tax paid is the net interest: it is the amount you can keep (and reinvest).
Bank Acc. - Balance at the end of the year in the bank account.
Key dates to look out for are a) the year in which your bank account balance exceeds the initial cost of the system installation - i.e. you've got your money back AND you still have X years of FITs and free electricity to come, and b) the year in which your bank account balance (if you installed a system) exceeds the bank balance you would have had you just kept the money in the bank. With the variables set to their default values, by the end of year 9 the installation has more than paid for itself, and by the end of year 12 the installation has paid for itself AND recovered the bank interest payments you would have received had your money been left in the bank instead of being locked up in solar panels.
Do not forget that after the 25 year period has finished, you will
still have an array of
solar panels which may continue to generate electricity for at least another 10-15 years (at perhaps 70-80% of their power output at time of manufacture). This will likely continue to attract cash payments if exported to the National Grid and/or give you a source of
free electricity.
Article Last Modified: 16:17, 16th Mar 2010Comment on this Article
If you have any comments on this article, please email them to
neil@reuk.co.uk.
Recommended Related Articles
People who read this article also enjoyed the following articles:
Feed in TariffFind out more about feed in tariffs - the amount you can be paid for exporting renewable electricity to the National Grid
Article Last Modified: 16:24, 16th Mar 2010solar | wind | generalUK Feed in Tariff to be Cut by 50 PercentUK government announces 50% cut in feed in tariff payable on new solar PV installations
Article Last Modified: 13:20, 30th Jan 2012solar | news | wind | generalWater Heating with Surplus Solar PVHeat water with surplus solar generated electricity
Article Last Modified: 19:38, 20th Oct 2011solar | water | generalGreenhouse Heatsink Connection DiagramPutting together a solar powered greenhouse heatsink
system
Article Last Modified: 09:27, 31st Mar 2009solar | heating | generalHow Do PV Solar Panels WorkFind out how photovoltaic solar cells generate electricity
Article Last Modified: 13:04, 18th Jul 2011solar | educationMolten Salt for Heat StorageFind out about how molten salt can be used as a heat store
Article Last Modified: 11:15, 18th Feb 2009heating | solar | generalWhat is Grid ParityAn introduction to the concept of grid parity in renewable energy generation
Article Last Modified: 13:07, 18th Feb 2009general | solar12 Volt Deep Cycle Batteries for SolarBuy deep cycle 12V batteries for small scale solar powered projects
Article Last Modified: 16:27, 12th Nov 2008storage | shoppingSolar Hot Hose ShowerUse a length of hosepipe to heat water for a shower and much more
Article Last Modified: 13:10, 30th Jan 2009solar | water | heatingRun Washing Machines with Solar Hot WaterFind out about the problems of running a modern washing machine with solar hot water
Article Last Modified: 12:35, 22nd Aug 2008energy efficiency | water | solar | general
|
|
|
