It is currently proposed that the energy supplying companies will be required to pay domestic customers for producing electricity.

You can see a sample of the Terms and Conditions document that energy companies may use here.

This payment comes in two parts.

Carbon Offset Payment

This payment is made for producing electricity; the proposal for Solar PV is up to 43.3p per kW. As a guide a 1kW system could produce between 750 and 850kWh per year (between £309.75 and £351.05).

The proposed payments for 1st April 2010 to 31st March 2011 are as follows :

SYSTEM SIZE	PAYMENT PER kWh
Less Than 4kw (Existing Building)	43.3p
Less than 4kw (New Build)	37.8p
4 - 10kW	37.8p
10 - 100kW	32.9p
100kw - 5MW	30.7p
Stand Alone System	30.7p

This payment will be made for 25 years, systems erected after 1st April 2012 will receive 7% less per kWh for 25 years.

Electricity Exported Payment

A meter can measure how much electricity you export back to the National Grid and for this you will receive a further minimu of 3p per kWh.

If you choose not to have a dual meter then it is assumed that 50% of the electricity generated is exported and the balance used for your own purposes.

Example

Assuming you use our 4kw system (actually 3,960w, so below the 4kW threshold) and that it produces (4 x 800kw) = 3,200kWh a year, the cost of Electricity is 12p per kWh.

Generating payment (800 x 4 x 43.3p)	£1,385.60
50% Exported (800/2 x 4 x 5p)	£80.00
Total Income from Electricity Supplier	£1,465.60

Money saved from using your own electricity (800/2 x 4 x 12p)	£192.00
Value to the household	£1,657.60

WARNING

At the moment the Electricity Supplying Companies are proposing that they will contract only if the system is MCS Accredited and has been fitted by an MCS Accredited fitter. Please check with your supplier before ordering.

The proposal is that the Feed in Tariff will replace the grants previously available. If you are being offered a £2,500 grant please make sure that it is still available.

In an average year, a 1kw system would be expected to produce between 750 and 850 kWh. This is subject to the weather, the angle of the roof, the direction of the roof. This illustration is meant as a guide only.

You can see a sample of the Terms and Conditions document that energy companies may use here.