The Feed In Tariff
The Feed-in-Tariff (FIT)
The Feed-in Tariff (FIT) scheme is a UK Government programme that is designed to encourage and benefit installers of smaller renewable electricity generation systems. Through the FIT, you can be paid for any electricity you generate if you have installed one of the eligible technologies, such as solar PV, a wind or hydro turbine or a micro CHP.
The Department of Energy & Climate Change (DECC) make the policy decisions about the scheme whilst the energy regulator Ofgem E-Serve administers it.
There are a large number of energy suppliers who also handle FIT applications and will make the payments for your technology- you may wish to have your FIT paid by your current energy supplier (British Gas, Eon Energy etc) or you may wish for it to be supplied by someone else- the rates of pay will remain the same with each supplier.
How much could you earn through the FIT?
You can benefit from FIT payments in three different ways
Generation Tariff – this rate is agreed and set by the DECC for each unit (or kWh) you generate through your chosen renewable technology. Once your system has been registered with your chosen FIT supplier, this rate will be guaranteed for the lifetime of the tariff (up to 20 years) and are index-linked.
Export Tariff – this rate is additional to your generation tariff and is for each unit of electricity you export back to the grid. For systems smaller than 30kW, this export is deemed, which means the FIT provider will estimate what you will export back to the grid – you will be paid the rate for 50% of your electricity generated at the export rate, additional to the FIT – it doesn’t matter if you use 100% of the electricity, this will still stand.
Savings on your energy bill – due to you using the generated electricity from your solar panels, you will be saving on your utility bills by not buying as much electricity from your provider. The amount you save will depend on the current amount you are spending and using.
As mentioned in the previous sections, there are two main tariffs to take into consideration when installing your renewable technology.
Eligibility for Tariffs
For solar PV installation, evidence of the property’s Energy Performance Certificate (EPC) must be submitted along with any FIT application. If the property achieves a D rating or higher, then the higher tariff is applied (as outlined in the tariff table)- properties band E or lower will be subject to the lower tariff – ask us for more details.
Solar PV applications that are submitted on or after 10 May 2016 need to provide an EPC which was carried out and issues before (and not on or after) the commissioning date of the installation.
The Greener Group can arrange an EPC to be undertaken before installation, if there is one not already registered for the property. The eligibility date from when FIT payments can be made will be the later of one of the following:
- The date an application is made to the FIT provider
- The start of the period (normally a yearly quarter) that the installation falls into
What do you have to include in your FIT application?
The Greener Group will help guide you through the FIT application process with your chosen supplier- both for domestic and commercial customers. For installations less than 50kW, you can apply for your FIT by using the MCS route for your application- see below some points and requirements to remember for your application process;
- You must ensure that your installation company is MCS accredited to be eligible for FIT payments- The Greener Group are fully accredited and can be found on their database (membership number: NAP 15106)
- Your installation company will generate an MCS certificate including details of the installation to be submitted along with your FIT application
- If you are interested in receiving the higher FIT rate, then ensure that your home has achieved a D rating on your Energy Performance Certificate (EPC) – if you haven’t already got one for your property, The Greener Group can assist with this.
- Make note of your MPAN supply number, so this can be easily cross referenced and matched with an address for your MCS certificate – this number will be on your energy bill.
- Meter readings will be taken when the system is first commissioned and then you must submit one with your application on the day you send it (the same day if you are emailing, or if you are posting, your FIT provider will call you for a reading when they have received it).