Sell Electricity Generated by a Wind Turbine

       

In April 2010 the Government introduced a 'feed-in tariff' (or 'FIT') which pays you for all the electricity that you generate - even if you use it.

This means you get paid 26.7p per unit you generate, in addition to the money you save not buying the electricity, typically around 12p per unit, and the money you receive, a minimum of 3p per unit, for selling surplus electricity to the grid. So, assuming you use half of what you generate and export half, each unit of electricity your Skystream generates is worth on average 34.2p.

This income is tax free so depending on your tax band this is worth either 41.5p per unit for lower rate taxpayers, or 55.3p per unit for higher rate taxpayers. So your Skystream should generate you a tax-free income and savings of between £855 to £1,710 per year (for lower rate taxpayers) and £1,140 to £2,280 per year (for higher rate taxpayers) at 2,000 and 4,000 units per year respectively.

These calculations are based on today’s prices of electricity and therefore any future electricity rises will accelerate the payback period.