You will qualify for the full FIT payments if:
- The technology was installed between 15th
July 2009 and 31st March 2010 and you transfered
to FITs before 1st April; OR
- It is installed after 1st April 2010 using
an MCS* certificated product and installer;
* The Microgeneration Certification Scheme (MCS)
is an independent scheme that certificates
microgeneration products under 50kW and installers
in accordance with consistent standards. Any
commercial or larger scale systems, over 50kW, and
all anaerobic digestion installations must apply
directly through the Renewables Obligation Order
feed-in tariff process for larger installations
(ROO-FIT) process as they are not covered by the
MCS. Information on the ROO-FIT process is available
on
Ofgem’s website.
Government review of
FITs
The Department of Energy and Climate Change
(DECC) have announced they are bringing forward
their review of Feed-in-Tariffs which will be
completed by the end of 2011 (originally scheduled
for 2012).
The comprehensive FITs review will:
- Assess all aspects of the scheme including
tariff levels, administration and eligibility of
technologies
- Be completed by the end of the 2011, with
tariffs remaining unchanged until April 2012
(unless the review reveals a need for greater
urgency)
- Fast track consideration of large scale
solar projects (over 50kW) with a view to making
any resulting changes to tariffs as soon as
practical, subject to consultation and
Parliamentary scrutiny as required by the Energy
Act 2008.
Further information is available on the DECC website.
How the scheme works
If you are eligible to receive the FIT then you
will benefit in 3 ways:
1.
Generation tariff
– a set
rate paid by the energy supplier for each unit (or
kWh) of electricity you generate. This rate will
change each year for new entrants to the scheme
(except for the first 2 years), but once you join
you will continue on the same tariff for 20 years,
or 25 years in the case of solar electricity (PV).
2.
Export tariff
- you will
receive a further 3p/kWh from your energy supplier
for each unit you export back to the electricity
grid, that is when it isn’t used on site. The export
rate is the same for all technologies.
3.
Energy bill savings – you
will be making savings on your electricity bills ,
because generating electricity to power your
appliances means you don’t have to buy as much
electricity from your energy supplier. The amount
you save will vary depending how much of the
electricity you use on site.
Deemed export
Domestic FIT installations are likely to have
their export deemed (estimated) at 50% in most cases
until smart meters are rolled out.
Example of how the Feed-in Tariff works
As an example, a typical domestic solar
electricity system, with an installation size of 2.7
kWp could earn around:
- £990 per year from the Generation Tariff
- £40 per year from the Export Tariff
- £140 per year reduction in current
electricity bills.
This gives a total saving of around £1,170 per
year.
This assumes 50% of the electricity generated is
exported. The figure will vary depending on how much
is exported.
See our
Feed-in Tariff/Cashback Calculator to find out
how much you could earn, and see the payback times.
You will require an additional
electricity meter to measure the electricity that
your system is generating (known as a total
generation meter), and also to measure how much is
being fed back into the electricity grid (if not
deemed, this is known as an export meter or may be
called a feed-in, feed-out meter).
You will be required to provide
meter readings to the suppliers, usually every
quarter, which is also the period that payments are
typically paid from your supplier.
- Once your chosen installer
has installed your generating technology, they
will register you on the central FIT database
and you will then receive a certificate
confirming FIT compliance.
- You must then inform your
chosen energy supplier that you are eligible to
receive the FIT by providing the certificate.
- The supplier will then cross
reference your installation with the central FIT
database.
- Payments will then be made
by your energy supplier at intervals to be
decided between you and your supplier.
- You may be required to
provide meter readings to the suppliers if
requested.
A list of the energy
suppliers who can provide FITs can be found on the
OfGem website.
If you want to opt out of the
guaranteed export tariff you must inform the
supplier. You may want to do this if you chose to
use a power purchase agreement. (This is a legal
contract between you and your electricity provider.)
Tariff levels, for
technologies installed between 15th July 2009 and
31st March 2012 of most significance to householders
Technology |
Scale |
Tariff level (p/kWh)*
|
Tariff lifetime (years)
|
Solar
electricity (PV) |
≤4 kW
(retro fit) |
43.3 |
25 |
Solar
electricity (PV) |
≤4 kW (new
build) |
37.8 |
25 |
Wind |
≤1.5 kW
|
36.2 |
20 |
Wind |
>1.5 - 15
kW |
28.0 |
20 |
Micro CHP
|
≤2kW |
10.5 |
10 |
Hydroelectricity |
≤15 kW |
20.9 |
20 |
*As of 1 April 2011 which take
into account rise in Retail Price Index (RPI) which
was 4.8%.
Tariff levels vary depending on
the scale of the installation.
The tariff levels shown in the
table above apply to installations completed from
15th July 2009 to 31st March 2012 for the lifetime
of the tariff. After this date, the rates decrease
each year for new entrants into the scheme.
All generation and export tariffs
will be linked to the Retail Price Index (RPI) which
ensures that each year they follow the rate of
inflation.
For a full list of tariffs,
please go to
FITs table from Ofgem taking into account the Retail
Price Index.
What payments will you be
eligible for, and how can you claim them?
The tariffs available and the
process for receiving them vary, depending on when
the technology was installed, and whether the system
and the installer were certificated under the MCS
scheme:
The following advice
applies to domestic installations. If you have
installed a qualifying electricity-generating system
in a non-domestic property with a grant from the Low
Carbon Buildings Programme, see the
Low Carbon Buildings Programme website
for further guidance.
Installed before July
15th 2009 and previously collected Renewables
Obligation Certificate (ROCs) payments
- If you contacted Ofgem
before 1st October 2011 to get your ROC
transferred to the FIT then you will receive
9.4p/kWh for every unit generated plus 3.1p/kWh
for every unit exported
Installed before July
15th 2009 but not registered for Renewables
Obligation Certificates
- If you didn't contact Ofgem
by 31st March 2010 to apply for Renewables
Obligation accreditation then you won't be
eligible for FITs.
- If you did register with
Ofgem by 31st March 2010 then you will receive
the flat tariff of 9p/kWh for every unit
generated plus 3p/kWh for every unit exported.
Installed between 15th
July 2009 and 1st April 2010
- You will get full FIT
payment if your installation is MCS certified
(installer and product). You can apply after
April 1st 2010 if you haven’t already.
- If your installation wasn’t
MCS certified and you didn’t contact Ofgem by
31st March 2010 to apply for Renewables
Obligation accreditation then you won’t be
eligible for FITs
Installed after 1st April
2010. MCS certificated product and installer
- You are eligible for full
generation tariff and export tariff.
- Contact your energy
supplier, and send them your MCS certificate to
tell them you are eligible to receive FITs.
- If you install after the 2nd
year of the scheme your tariff could be reduced,
depending on the installation size.
Installed after 1st April
2010. Non-MCS certificated product and installer
- Systems that are not MCS
certificated will not be eligible to receive the
FIT generation tariff or the guaranteed FIT
export tariff. There is the possibility of
receiving generation and export tariffs outside
of the FIT scheme if privately negotiated.
- You will still benefit from
lower electricity bills. The saving will depend
on how much of the electricity you generate is
used on-site.
- The one exception to
this is microhydro which will be eligible for
the ROO-FIT process even if it is under 50kW in
size. Enquiries for this should go to Ofgem,
email
renewable@ofgem.gov.uk
Small Generators (50kW to
5MW) installed from 15th July 2009
- If you switched from
Renewables Obligation Certificates (ROCs) to
FITs before 1st April, then you will be eligible
to receive the full generation tariff and export
tariff.
Don’t forget energy
efficiency!
Before you invest in renewable or
low carbon energy systems you should always make
sure you house is as energy efficient as possible,
so that the energy you generate is not wasted. You
should ensure you have carried out the following
measures:
These measures will help lower
your energy bills, and ensure that the energy you
generate is used as effectively as possible.
Find out how to make your home more energy efficient
Once your system is installed you
should review the way you use energy in the home so
you can make the most of the energy you generate.
For example, solar electricity panels only generate
electricity during the daylight hours, so it’s a
good idea to use the washing machine and dishwasher
during the day, rather than at night time. This
means you can minimise the amount of electricity you
have to buy from your supplier.
Financial support may be
available for help with upfront costs of installing
energy efficiency measures. Go to the
grants and offers page to
find out what is available in your area.
Frequently Asked Questions
Will I be eligible to
receive the tariff if I move into a home that
already has an electricity generating technology?
FIT eligibility remains with the
installation, even if the ownership of the home or
generating technology changes. Therefore the
technology must have been eligible before you move
in, even if it is not registered yet.
What happens if I move
home?
Ownership of the technology is
linked to the site and, therefore, in the case where
a building or homeownership changes, the ownership
of the technology would also transfer to the new
owner.
I rent my property. If my
landlord installs an electricity generating
technology, who would receive the FITs?
It will be up to landlords and
tenants of domestic or commercial property to come
to an arrangement about the receipt of payments and
on-site electricity use benefits.
Will I need a special
meter to be able to claim FITs?
Generation must be metered and
FITs payments are made to generators on the basis of
metered generation. Meters will need to be able to
measure generation, usage and import. However, as an
interim measure, DECC has announced that at the very
small scale, the amount of exports for the payment
of export tariffs can be deemed (estimated), subject
to the following:
- These arrangements will only
apply until the finalising of specifications for
smart meters;
- These arrangements do not
apply if export meters exist already, or are
provided at the generator's expense
My system is not
connected to the electricity grid – can I still
claim the Feed-in Tariff?
Yes you will be eligible to
receive a generation tariff at the tariff rate that
is applicable for the type and capacity of the
generating technology. You will also have to sign a
declaration stating that all of the electricity
generated on site will be used and not wasted.
Consumer guidance on free
solar PV schemes
A number of companies are now
offering free solar PV to customers in return for
the income generated through FITs.
Read consumer guidance on free solar PV schemes.
Further information
View the full consultation response from the
Government
For more information on which technologies are
suitable for your home use the Home Energy
Generation Selector
For an idea of how much you
may be able to earn, use the
Cashback Calculator.
This information is accurate to
the best of our knowledge at time of publication.
Some details may be subject to change.