This old tariff rate which is soon to expire was paying roughly 16% APR. Which when compared to banks and other guaranteed investment options is excellent! Unfortunately the government also spotted this pretty early on and quashed it with a simple tariff change, effective 1 April 2012.
Any new installations will recieve the £43.3p only up until April 1st 2012 and then they will revert over to the new rate of £0.21p per kWh. This is a pretty substiantial cut for the government to have made and infact they made it a year earlier than had initially been expected. This was largely due to technological advances in solar photovoltaics bringing solar panels to market far cheaper than ever before. Installers we’re in turn passing these cost savings onto customers, making the Feed-in Tariff an even better proposition.
The government has moved to quash this overly attractive scheme and bring it down a by over half of its original value, in one foul swoop.
Your now looking at £0.21p per kWh which going to be giving a return of around about 8% APR.
Here is an example
16 panel maximum power system of 3.068kWh, initial cost of £9,999 including installation.
50% of power kept in the house and 50% exported.
3,068 @ 21.00p per kWh = £644.21
50% exported = 1,534 @ 3.10p = £47.55 (export tariff)
Electricity saving = 1,534 x 0.139 (daytime electricity rate) = £213.20
Totalling £904.96 first year benefit.
Full payback of system install cost 9 years and 11 months (assuming an RPI of 3.584% each year).
Total profit over 25 year period estimated to be £21,110.97.
As you can see even at the adjusted rate the benefits are still clear, working out at roughly £1,000 a year.