Clean Energy Cash Back Facts
- Clean Energy Cash-Back is the name of the government scheme, introduced in April 2010 to kick-start the installation of renewable energy systems.
- At present, individuals and organisations installing Solar Electric (PV) are eligible for payments from the Feed-In Tariff which is currently available at 14.7p per KWh.
- As well as being tax-free, these payments are linked to the retail price index (RPI), meaning they increase each year with inflation. Therefore the price earned for a unit of electricity under this scheme is guaranteed over time.
- Solar electric systems will benefit from the longest term of all the renewable energy systems of 25 years with 18-20 years for the other technologies.
- You will receive two payments, a generation payment and an export payment. Both are tax-free and increase each year in line with RPI inflation.
- The money does not come from the government, rather from power companies who are forced to pay higher rates for electricity coming from renewable energy systems. This means that if you are not benefiting from the Clean Energy Cash-Back scheme you are indirectly (through your utility bills) paying for somebody else to benefit from it!
- To qualify from these tariffs you must ensure your home has an Energy Performance Certificate and your renewable energy system is installed by an installer approved under the Microgeneration Certification Scheme (MCS). Learn More. Once your system is operational you will be paid for the energy you produce.
- If you choose Really Renewable to install your system, we take care of the whole project from design and specification right through to installation.
For every unit of electricity your system generates, you will be paid 14.7p by your electricity provider. You will receive the payment whether the electricity is used on site or exported to the national grid. Of course self consumption is best as it displaces a unit that would have been bought from the grid at a cost of 14p. Of all the renewable technologies, Solar Electric (PV) will attract the most generous payment (14.7p) a unit for the longest term (25 years).
If the electricity is not needed on site, it is automatically exported to the national grid. It will attract a minimum payment of 4.5p a unit and is in addition to the generation payment of 14.7p. Rather than installing an export meter in every property fitted with solar panels the electricity suppliers generally pay 50% of the total generated. An export meter is therefore only necessary if you’re not using much electricity during the day.
If possible, try to use the electricity produced by your panels to use in your home. This avoids buying it from your supplier as you pay a supplier is roughly three to four times more than the price you’ll receive for any unused exported electricity that gets exported to the national grid.
The size of installation that you can install is determined by 2 factors: the size of your roof and your budget. The larger a system is the more electricity it will generate.
Recieving your Payments
We believe in conservatively calculating returns and our systems over delivering; as such these figures represent the minimum you will receivesee how we calculate this
|Location||Units (KWh)||Payment (21p)||Carbon Saved (Kg)|
Please remember these payments are linked to Inflation and tax-free
Solar Electric (PV) installations provide stable, long-term income and as such are useful as an alternative to a Pension Annuity.
The figures in this table are calculated from the European Joint Research Centre.
If you live in Welwyn and have installed a 4KWp solar electric (PV) system, this system will produce about 3800 units of electricity a year. The generation payment of 14.7p per unit (for systems between 0-4KWp) provides a tax-free income of £545 per year.
Once generated, you can use it this electricty yourself or export it to the national grid. It cannot be stored.
Using all of the electricity you you generate yourself saves you purchasing electricity from your supplier at around 15p a unit. In this example, this equates to annual savings of £570. This means you can maximise your savings by attempting to match your usage of electricity to the output of your solar system.
Under the terms of the Feed-In Tariff your electricity supplier must buy the electricity you export to the national grid. You will receive a minimum of 4.5p per unit of electricity exported.
However, instead of installing an export meter in every property fitted with solar panels the suppliers generally pay a standard 50% of the total generated. In this case you would earn an extra £76.