About Feed-In Tarrifs
Under this scheme energy suppliers will make regular payments to householders and communities who generate their own electricity from renewable or low carbon sources such as solar electricity (PV) panels and wind turbines.
The scheme guarantees a minimum payment for all electricity generated by the system, as well as a separate payment for the electricity exported to grid. These payments are in addition to the bill savings made by using the electricity generated on site.
After you have a microgeneration technology installed you should experience a reduction in your electricity bill and in addition receive an income from the Feed-in Tariff which is paid by the utilities companies.
More about the Scheme
The scheme covers the following electricity generating technologies,
- Solar electricity (PV) (roof mounted or stand alone)
- Wind turbine (building mounted or free standing)
- naerobic digestion
- Micro combined heat and power (micro CHP) (limited to a pilot at this stage)
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 accredited under the MCS* scheme. See below for further details.
You will qualify for the full FIT payments if:
- The technology was installed between 15th July 2009 and 31st March 2010 and you transferred to FITs before 1st April; OR
- It is installed after 1st April 2010 using an MCS* certificated product and installer;
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, guaranteed for 25 years.
2. Export tariff - you will receive a further 3p/kWh from your energy supplier for each unused unit you export back to the electricity grid.
3. Energy bill savings - you will be making savings on your electric bills as generating electricity to power your appliances means you don't have to buy as much electricity from your energy supplier.
Example of how the Feed-in Tariff works
As an example a typical domestic solar electricity system, with an installation size of 2 kWp could earn approximately:
- £351 per year from the Generation Tariff
- £27.50 per year from the Export Tariff
- £220 per year reduction in current electricity bills.
This gives a total saving of around £1005.50 per year.
This assumes 50% of the electricity generated is exported. The figure will vary depending on how much is exported.
How to take advantage of the Feed-in Tariffs:
You will require an additional electricity meter to measure the electricity that your system is generating, and also to measure how much is being fed back into the electricity grid.
- Once your Solar PV System is installed it is registered on the central MCS database and you will receive a certificate confirming MCS compliance.
- You must then inform your energy supplier that you are eligible to receive the Feed-In Tariff by providing the information on the MCS certificate.
- The supplier will access the central MCS database to verify your installation.
- Payments will then be made by your energy supplier at mutually agreed intervals between you and your supplier.
- You may be required to provide meter readings to your suppliers.
Contact Us Today
We look forward to assisting you with your enquiries about About Feed-In Tarrifs. If you have any questions please call us today on: 0800 756 7587 to find out more.