Feed-In Tarrif

Feed-in tariffs (FITs) were introduced by the Government on the 1st April 2010 to support the uptake of micro generation technologies.  The FITs scheme guarantees a minimum payment for all electricity you generate as well as paying you for any electricity you export to the national grid.  FITs are paid by electricity suppliers, not the government.  There are two types of tariff:-

• Generation Tariff
• Export Tariff

Generation Tariff

The generation tariff is the set rate paid by your energy supplier for each unit of electricity (kWh) generated.   Tariff rates vary according to the type and size of system:

• Up to 4kW – 21p
• >4-10kW – 16.8p
• >10-50kW – 15.2p
• >50-250kW – 12.9p

It is likely that the above rates will be reduced from July 2012 and again in October 2012.  There will also be other control measures introduced to ensure Feed-in Tariffs are aligned to installation costs.

Currently, when you join the scheme, the rate is guaranteed for 25 years and index linked to RPI.  Again, proposals are currently under consultation to reduce the lifetime of the tariff for new installations to 20 years and to remove index linking to RPI or possibly change this to CPI.  This page will be updated with any changes as they are announced.

Export Tariff

You will receive an extra 3.1p for each unit exported to the grid.  There has been a fair amount of misunderstanding about ‘selling back’ to the grid so this is how it works.  Currently, the amount of electricity you actually use from your Solar PV system is not metered so there is an assumption that 50% of what you generate is exported to the national grid.  What you generate is metered so the energy company will offer you a further 3.1p per unit for 50% of the units generated.

Feed-In Tariff Payments

The payment is calculated from meter readings taken from a special generation meter installed adjacent to your fuse board.  Once your PV system is commissioned, you will need to apply to your electricity supplier for the Feed-in Tariff.  We help our customers by preparing the application form for them.  Once your application is received, your energy company will write to you and offer you a Feed-in Tariff contract.  This is separate to your electricity supply contract.  You will be asked to provide a reading from your generation meter, usually on a quarterly basis, and from this reading they will calculate your payment.  Money is then paid to you either by cheque or directly into your bank account.

Example Calculation

Let’s use the example of a 3.8kW Solar PV System (20x190W panels)

On a south facing roof with a 30 degree pitch and no over-shading, this system can generate 3262 kWh / year.

• The Generation Tariff would be 3262 x £0.21 = £685
• The Export Tariff would be 3262 x 50% = 1631 x £0.031 = £50
• Total Feed-in Tariff = £735

So in this example, you would receive quarterly payments adding up to approximately £735 over a year.