FIT ALLOWANCE VIABILITY

The following figures are derived from an actual working installation at the home of one of our Trustees. The panels were installed and commissioned on July 4th 2010.

Total amount generated over 12 months 2,925 kw X 21p = £614.25
Amount used by householder 1950 kw saving 13.7p per kw = £ 267.15

Amount returned to the national Grid 1312 kw X 3p = £ 43.88

Total amount of effective income generated = £928.28

The cost of installing the panels (3.84kw capacity) was £15,000, as you can see from the figures above the rate of return on capital invested will be approximately 6.45%. With current Annuity rates hovering around the 5-6% mark, this would seem to be a much better prospect.

The allowance of 21p per kw paid by the government is guaranteed for 25 years from the date of installation and will be increased by the same amount as the increase in the RPI each year. Should the RPI fall, the allowance will not be reduced.