Tax free income from Solar PV

There´s never been a better time to install your own energy source or a better scheme to support you in doing so.

South West Energy Services Ltd. can supply and install solar PV panels to generate your very own small scale, low carbon electricity and receive ´clean energy cashback´. Commonly referred to as FiTs. From the 1st April 2010. You´ll be guaranteed a minimum payment for the electricity you generate as well as any excess electricity you export to the grid.

Benefits and Payments:
There are two payments your new source of electricity will benefit from:

Generation - a fixed payment from your electricity supplier for every kWh you generate- you can even use the electricity you have generated yourself and still get paid for it.

2.Export - a fixed payment of an extra 3p for every kWh of electricity you put back into the grid*. Or you can opt out of this fixed price and negotiate a price for exported electricity on the open market.

The generation and export tariff rates are linked to the Retail Price Index (RPI), which means your tariff will increase or decrease with inflation or deflation.

The tariffs are divided into bands based upon the total capacity of your system, see below:

Technology

Scale

Tariffs for new installations in period (pence/kWh) [will be inflated annually].

 

 

Year 1-
1/4/10-31/3/11

Year 2-
1/4/11-31/3/12

Year 3-
1/4/12-31/3/13

Export rate

Tariff/ Lifetime

PV

<4kW(new build)

36.1

36.1

33.0

3

25

PV

<4kW(retrofit)

41.3

41.3

37.8

3

25

PV

>4-10kW

36.1

36.1

33.0

3

25

PV

>10-50kW

31.4

31.4

28.7

3

25



*As an example, a typical domestic solar electricity system, with an installation size of 2 kWp could earn around:

  • £700 per year from the Generation Tariff
  • £25 per year from the Export Tariff
  • £110 per year reduction in current electricity bills.

This gives a total saving of around £830 per year.


This assumes 50% of the electricity generated is exported. The figure will vary depending on how much is exported.

And even better news, households that generate mainly for their own use won´t be subject to income tax on their payments. Earnings for businesses, public sector and NGOs are still taxable though

So what´s eligible?
The Products and installer must be accredited under the Microgeneration Certification Scheme (MCS)
South West Energy Services are MCS accredited and only install MCS accredited Solar Panels

 

For further Information

Please call contact us on 01752 562221 or email us at info@swenergy.co.uk and we will be happy to advise you further.

*Source the Energy Saving Trust

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