So, at long last, the industry knows what level of incentive PV will receive.
GB-Sol managing director, Bruce Cross, said 'I warmly welcome the announcement of feed-in tarrifs by the government. As a PV manufacturing company we are ready to invest and expand to meet the requirements of our installers and resellers'. 'We expect our UK made PV and aesthetically-pleasing integrated mounting systems to increase market share as the market expands', he added.
The feed-in tarrif levels for pv were announced as follows:
| Category | Pence/kWh |
| Under 4kW New Build | 36.1 |
| Under 4kW Retrofit | 41.3 |
| 4 - 10 kW | 36.1 |
| 10 - 100 kW | 31.4 |
| 100 kW - 5 MW | 29.3 |
| Stand Alone System | 29.3 |
The rate is paid for every kWh generated, and of course you save the cost of buying the kWh as well.
These rates are paid for the 25 year lifetime of the system and rise with the RPI. This effectively makes PV investment 'inflation proof'.
The rates hold for the first 2 years, new installations after that time will have a reduced rate.
And the icing on the cake - the income from PV electricity will be exempt from income tax.
The government say they have set the rates to give a return of around 8%. Where else can you invest money with such a return today?