Well, how does it all work?
- on your roof generate DC current (like in a battery)
- A special piece of equipment called an Inverter, converts this DC current into AC current (like in your mains electricity)
- This AC current is fed into your electricity fuse board via a Generation Tariff Meter (this records how much electricity you have generated)
- You phone this meter reading through to your electricity provider 4 times a year and they send you a cheque for every kilowatt you have generated – currently 16 pence per kilowatt hour (known as the Feed In Tariff)
- In addition to this, they also assume that you will only use half of what you generate and you’ll automatically send the other half back up the mains to them. For this they pay you 4.5 pence per kilowatt hour (called the Export Tariff)
Get paid to generate your own electricity!
If you have tied up your hard earned savings or pension plan in an ISA or deposit account, the very most you can expect to earn back is around 3.5% per year.
Invest between £5000 and £7,500 in a government backed incentive and you will benefit in 3 main ways:
- Your electricity supplier will pay you for every kilowatt of power you generate, currently 15.44 pence per kilowatt/hour (KWh)
- Any electricity you generate is yours to use, absolutely FREE!
- The Government assumes that you will only ever use half of the power you generate and the rest will be fed automatically back into the National Grid. For this 50% they will pay you 4.5 pence per KWh
These benefits add up to between £560 and £1100 per year, guaranteed. Paid to you quarterly by cheque or paid into your bank.
That’s around an 8.5% – 13% return on your investment.