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
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 |