Feed-in Tariffs (FITs) became available in Great Britain on 1st April 2010. And isn’t available in Northern Ireland - although this is under review.
Under this scheme energy suppliers have to (compulsory for big six suppliers) make regular payments to householders and communities who generate their own electricity from renewable or low carbon sources such as solar electricity panels(PV) or wind turbines.
The FITs 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.
Once you have a microgeneration technology installed you should experience a monthly reduction in your electricity bill and then receive an income from your Feed-in tariff provider. However, if you have taken out a loan to pay for the installation you will have to make monthly repayments to your loan company.
Feed-in tariffs are designed so that the average monthly income from your installation will be significantly greater than your monthly loan repayment (with a 25 year loan).
Use the cashback calculator to see how purchase price and loan can impact on payback times.
The scheme covers the following electricity-generating technologies, up to an installation size of 5 Mega Watts:
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. See below for further details
You will qualify for the full FIT payments if:
* 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.
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:
Further information is available on the DECC website.
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:
This gives a total saving of around £1,100 per year.
This assumes 25% of the electricity generated is used directly in the home. The figure will vary depending on how electricity is used.
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.
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.)
| 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.
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
Installed before July 15th 2009 but not registered for Renewables Obligation Certificates
Installed between 15th July 2009 and 1st April 2010
Installed after 1st April 2010. MCS certificated product and installer
Installed after 1st April 2010. Non-MCS certificated product and installer
Small Generators (50kW to 5MW) installed from 15th July 2009
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.
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:
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.
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.
View the full consultation response from the Government
For an idea of how much you may be able to earn, use the Cashback Calculator.
People in Scotland can also apply for an interest-free loan through the Scottish Government’s Home Renewables Loans scheme.
This information is accurate to the best of our knowledge at time of publication. Some details may be subject to change.
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