The Feed in Tariff

Is this for real? Can I get paid for the electricity I generate?
This page is all about the feed in tariff for Solar PV (Solar Photovoltaic). Here we take you through some of the main questions we get asked about the scheme and how to apply. When installing solar panels on your home or business in the UK there is a high chance that you are eligible for the government’s feed in tariff. Also known as the clean energy cash back scheme.

What is the feed in tariff?

The feed in tariff (FIT for short) is a tariff which is paid to energy users that create their own renewable electricity.
The tariff is also referred to as the clean energy cashback scheme. It was introduced by the government to help boost the installation of renewable energy systems in the UK.
Who is eligible?
The feed in tariff is eligible for most people that generate their own electricity. Most forms of renewable electricity are accepted such as electricity generated by solar panels, wind turbines, Hydropower and so on.
Most people can benefit from the FIT including, Households, Landlords, Businesses, Schools, Hospitals, Churches, Care Homes and many other similar organisations.
Here at energy creation we install Solar Panels mainly so we will keep focussed on those tariff’s however if you are interested in the others this is a great resource. -> http://www.energysavingtrust.org.uk/domestic/content/feed-tariff-scheme

How is the FIT tariff made up?

Signing up to the FIT’s will give you 3 major benefits. These are, The Generation tariff, the Export Tariff and savings in electricity bills.

Generation Tariff

The company you buy your energy from will give you a set rate per unit of electricity that you generate. The units are measured in kWh’s (kilowatt hours) the same way that you buy your electricity. This is measured using a generation or “payback meter” again similar to the meter which measures the electricity that you buy. Once your system has been installed by a MCS installer and registered the tariff is guaranteed for 20 years and is index-linked.

Export Tariff

The beauty is it doesn’t stop there! You will get an additional 4.85 p/kWh (pence per kilowatt hour) for any electricity you don’t  use yourself. Solar PV systems less than 30kWp are generally on a deemed export tariff, meaning they assume that you have used 50% and exported 50%. Therefore you get paid the export tariff for half your generation automatically. If you have over 30kWp you will need an export meter installed to opt-in for export payments.

Electricity Savings

Electricity generated can be used in the home or business. The idea is to use as much of the electricity you generate as possible. One way of doing this is battery storage. Therefore saving on how much electricity you have to buy. You still get paid the generation tariff for energy that you generate and use.

How much could I be paid?

This is changing with time. Once fixed into a tariff you are fixed on that rate plus any index linked inflation for 20 years. (used to be 25 years).  Every quarter Ofgem review tariffs and drop them depending on the amount of solar that has been installed.

The current feed in tariff for Solar PV is shown in the table below.

All tariff rates are displayed in pence per kilowatt hour (p/kWh).

Feed in Tariff Table - Solar PV
Total Installed Capacity Feed in tariff rate with eligibility date on or after 1 July 2015 and before 1 October 2015 Lower tariff (if EPC requirement not met) with eligibility date on or after 1 July 2015 and before 1 October 2015
Less than 4kW (new build and retrofit) 12.92 5.94
4kW – < 10kW 12.13 5.94
10kW – <50kW 11.71 5.94
50kW – <100kW 9.63 5.94
100kW – <150kW 9.63 5.94
150kW – <250kW 9.21 5.94

The Export tariff is set to 4.85 pence per kilowatt hour (p/wWh)
Source -> https://www.ofgem.gov.uk/environmental-programmes/feed-tariff-fit-scheme/tariff-tables

Seems too good to be true…Why are the Government offering this?

Well, it’s because the Government have signed up the UK to a legally binding target. This is that 15% of our countries total energy must come from renewables by 2020. Therefore they need our help and the more we install the closer they reach their target.

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