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What is the Financial Argument for Micro Generation?

The Fit incentive not only encourages business and householders to generate their own electricity , it also makes it a highly profitable investment. Below is a financial analysis of a Solar photovoltaic ( PV ) system measuring 20 m2 that has installed after April 2010 and consumes 70% of the electricity it generates on site.

Initial Investment:

2.59kWp Solar photovoltaic system: £ 12,987.67

Year 1 income :

Income from Feed-In Generation Tariff @ 41.30p/kWh: £ 862.62
Income from exporting energy @ 3.00p/kWh: £ 18.80
On site electricity Saving: £ 203.23

Total Year 1 income : £ 1,084.65

This system has a payback time of 9 years and 5 months , total revenue generated from system over 25 years : £49,300.96

System profit over 25 years : £ 36,313.29

Break down of figures

FIT Generation Income Export Income On-Site electricity savings Balance
2,089kWh x 41.30p = £ 862.62 627kWh x 3.00p = £ 18.80 1,462kWh x 13.90p = £ 203.23 -£11,903.02
2,089kWh x 43.82p = £ 915.10 627kWh x 3.18p = £ 19.94 1,462kWh x 16.51p = £ 241.44 -£10,726.54
2,088kWh x 45.13p = £ 942.33 626kWh x 3.28p = £ 20.53 1,462kWh x 18.00p = £ 263.11 -£9,500.57
2,087kWh x 46.48p = £ 970.12 626kWh x 3.38p = £ 21.14 1,461kWh x 19.62p = £ 286.64 -£8,252.67
2,085kWh x 47.88p = £ 998.43 626kWh x 3.48p = £ 21.76 1,460kWh x 21.39p = £ 312.19 -£6,920.29
2,083kWh x 49.31p = £ 1,027.22 625kWh x 3.58p = £ 22.38 1,458kWh x 23.31p = £ 339.91 -£5,530.78
2,080kWh x 50.79p = £ 1,056.46 624kWh x 3.69p = £ 23.02 1,456kWh x 25.41p = £ 369.95 -£4,081.35
2,076kWh x 52.32p = £ 1,086.10 623kWh x 3.80p = £ 23.67 1,453kWh x 27.70p = £ 402.48 -£2,569.10
2,071kWh x 53.89p = £ 1,116.09 621kWh x 3.91p = £ 24.32 1,450kWh x 30.19p = £ 437.69 -£991.00
2,065kWh x 55.50p = £ 1,146.40 620kWh x 4.03p = £ 24.98 1,446kWh x 32.91p = £ 475.76 £656.14
2,059kWh x 57.17p = £ 1,176.97 618kWh x 4.15p = £ 25.65 1,441kWh x 35.87p = £ 516.90 £2,375.66
2,051kWh x 58.88p = £ 1,207.75 615kWh x 4.28p = £ 26.32 1,436kWh x 39.10p = £ 561.32 £4,171.05
2,042kWh x 60.65p = £ 1,238.69 613kWh x 4.41p = £ 26.99 1,430kWh x 42.61p = £ 609.24 £6,045.97
2,033kWh x 62.47p = £ 1,269.72 610kWh x 4.54p = £ 27.67 1,423kWh x 46.45p = £ 660.88 £8,004.24
2,022kWh x 64.34p = £ 1,300.78 606kWh x 4.67p = £ 28.35 1,415kWh x 50.63p = £ 716.48 £10,049.85
2,010kWh x 66.27p = £ 1,331.80 603kWh x 4.81p = £ 29.02 1,407kWh x 55.19p = £ 776.30 £12,186.97
1,996kWh x 68.26p = £ 1,362.70 599kWh x 4.96p = £ 29.70 1,397kWh x 60.15p = £ 840.59 £14,419.96
1,982kWh x 70.31p = £ 1,393.41 595kWh x 5.11p = £ 30.36 1,387kWh x 65.57p = £ 909.60 £16,753.33
1,966kWh x 72.42p = £ 1,423.83 590kWh x 5.26p = £ 31.03 1,376kWh x 71.47p = £ 983.60 £19,191.79
1,949kWh x 74.59p = £ 1,453.88 585kWh x 5.42p = £ 31.68 1,364kWh x 77.90p = £ 1,062.86 £21,740.21
1,931kWh x 76.83p = £ 1,483.44 579kWh x 5.58p = £ 32.33 1,352kWh x 84.91p = £ 1,147.65 £24,403.63
1,911kWh x 79.14p = £ 1,512.43 573kWh x 5.75p = £ 32.96 1,338kWh x 92.55p = £ 1,238.23 £27,187.25
1,890kWh x 81.51p = £ 1,540.71 567kWh x 5.92p = £ 33.57 1,323kWh x 100.88p = £ 1,334.87 £30,096.40
1,868kWh x 83.95p = £ 1,568.18 560kWh x 6.10p = £ 34.17 1,308kWh x 109.96p = £ 1,437.81 £33,136.56
1,844kWh x 86.47p = £ 1,594.69 553kWh x 6.28p = £ 34.75 1,291kWh x 119.86p = £ 1,547.29 £36,313.29