Feed-in Tariffs (FITs) became available in Great Britain on 1st April 2010.
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 sources.
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 Feed-in Tariff payments are tax free to domestic households and index linked to inflation for both commercial and domestic installations. 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:
- 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 but once you join you will continue on the same tariff for 20 years in the case of solar electricity (PV).
- Export tariff - you will receive a further 4.77p/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.
- 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 we will teach you methods to use as much of your own FREE electricity as possible to make your money go further which will in turn shortern your payback period and boost your return on investment.
Tariff level (p/kWh)
Tariff lifetime (years)
≤4 kW (retro fit)
≤4 kW (new build)
|Solar Pv||4kW - 10kW||13.03p||20|
|Solar Pv||10kW - 50kW||12.13p||20|
|Solar Pv||50kW - 150kW||10.71p||20|
|Solar Pv||150kW - 250kW||10.25p||20|
You will need an extra electricity meter called a Generation Meter. This measures the electricity your system is generating. We will provide this as part of the installation package and original quote.
Additional 4.77p bonus will be awarded for every unit of electricity exported.
Tariff levels vary depending on the scale of the installation.
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.
How long will it last?
The tariff will be paid for 20 years for photovoltaic installations.
Will the tariff change?
Once your tariff is agreed it will not decrease. It will increase each year in line with inflation (retail price index).
Is VAT payable?
VAT at 5% is payable on domestic installations. New Builds are often VAT exempt, commercial buildings will pay standard VAT rates at 20%.
Who is eligible?
All PV installations under 5MW, private and commercial are eligible. On the commercial side, the feed-in tariff will encourage photovoltaic (PV) installations among farmers, rural businesses, small and medium enterprises .
Registering for FIT's
Storm will take you through the registration process on the Final Handover, however these are the steps to register for FIT:
• We will register your system on the central FIT MCS database, who will issue us a certificate confirming FIT compliance.
• Storm will ask you which supplier you want to nominate to receive the FiTs and sell your generated electricity to. We will then help you complete the Application form ensuring all the necessary documentation is included.
• Your nominated supplier will then cross-reference your installation with the central FIT database.
• Your nominated supplier will then sends out a FiT agreement and notify you the generation tariff and importantly the day every quarter when you will need to provide meter readings.
Source: Energy savings trust