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 | generalSunPower SPR 315 Solar PanelsFind out about the latest SunPower SPR-315 super efficient solar panels
Article Last Modified: 15:18, 3rd Jan 2007solar40 Percent Efficiency PV Solar PanelsSpectrolab break 40% efficiency for PV solar panels
Article Last Modified: 15:00, 9th Jan 2007solar | newsGrid Tie InvertersFind out more about Grid Tie Inverters - connect your RE system to the grid
Article Last Modified: 16:36, 2nd Jan 2007general | wind | solar | electronicsRainwater Toilet Flush SystemFind out how to put together a complete rainwater fed toilet flushing system
Article Last Modified: 15:16, 19th Aug 2008water | general | electronicsPower InvertersFind out about the uses of power inverters in renewable energy generation
Article Last Modified: 16:41, 21st Jul 2008storage | general | electronicsWater Pump Hysteresis CircuitA simple circuit to prevent a pump being damaged by being turned on and off rapidly (multiswitching)
Article Last Modified: 14:54, 19th Nov 2007water | electronics | electric circuitCollect RainwaterDon't waste the rain water that falls on your home. Use it.
Article Last Modified: 16:09, 1st Jun 2007waterBuild a Concentrated Solar Water HeaterPlans for building a cheap advanced solar water heating system
Article Last Modified: 07:54, 8th Apr 2010heating | solar | waterGreywater Diverter ValveFind out about greywater diverter valves and how they are used in water recycling
Article Last Modified: 17:01, 18th May 2007water
|
|
|
