Feed-In Tariffs were introduced on 1 April 2010 and replaced UK government grants as the main financial incentive to encourage uptake of renewable electricity-generating technologies. Most domestic technologies qualify for the scheme, including:
solar electricity (PV) (roof mounted or stand alone)
wind turbines (building mounted or free standing)
micro combined heat and power (CHP).
The UK Government’s Department for Energy and Climate Change (DECC) makes the key decisions on FITs in terms of government policy. The energy regulator Ofgem administers the scheme.
Your energy supplier will make the FITs payments to you. The large energy suppliers are required by law to provide them; smaller suppliers are not, but many have opted to offer them anyway. Go to the Ofgem website for a list of FITs-licensed suppliers.
For you to qualify for FITs, the installer and the products you use must both be certified under the Microgeneration Certification Scheme (MCS), except hydro and anaerobic digestion which have to go through the ROO-FIT process. The tariffs you receive depend on both the eligibility date and, for solar PV, your property’s Energy Performance Certificate (EPC) rating.
View our Solar PV products and calculator here
What are the ‘higher’, ‘middle’, and ‘lower’ rates in the FITs tariff tables?
• The higher, middle, and lower rates for solar PV installations are defined in the Modifications to the Standard Conditions of Electricity Supply Licences (No. 2 of 2012) available here.
• The lower rate applies to installations that do not meet the energy efficiency requirement (if applicable).
• The middle rate is the multiple installation tariff – i.e. it applies to installations that meet the energy efficiency requirement (if applicable), and where the generator or nominated recipient for FIT payments is already the generator or nominated recipient for 25 or more other solar PV installations.
• The higher rate is the standard tariff for installations that meet the energy efficiency requirement (if applicable) and do not fall into the definition of multiple installations.
Did the solar PV tariffs increase with inflation in April 2012?
• Tariffs for existing FITs installations with eligibility dates before 3 March 2012 were increased with inflation in April 2012.
• New tariffs for PV installations from 3 March had already incorporated this increase and were not increased further.
Did the tariffs for other technologies go up in line with inflation in April 2012 as well?
• Yes, tariffs for all non-PV technologies were also increased in line with
inflation in April 2012. Some were also subject to planned degression at the same point (upgraded tariffs available here). New tariffs are intended for some of these technologies from December 2012.
￼￼DECC Feed in Tariff Team | Thursday, July 19, 2012 | Page 23 of 25
How much money will I make if I install solar PV on my house?
• That depends on a range of factors such as the direction of your roof and the size of your panels. The Energy Saving Trust website has a calculator which can be used to predict potential income – http://www.energysavingtrust.org.uk/Generate-your-own-energy/Solar- panels-PV/Solar-Energy-Calculator
What will I need to do to ensure that I receive the current tariff before a tariff reduction takes effect? What is the ‘eligibility date’?
• To receive the current tariff, the eligibility date of the installation must be
before the date on which tariff reductions take effect.
• The eligibility date for FITs installations up to 50kW in size continues to be the date on which the FITs Licensee (normally an electricity supplier) receives a complete application for FITs.
• This means that the installation must have been commissioned and your FITs Licensee must have received a valid application (with all the relevant documentation, including the MCS and EPC (if required) certificates) for FITs before the date of implementation of the new tariffs. We advise generators to contact their preferred FITs Licensee in advance of submitting their application to confirm acceptable methods of receiving applications.
• For installations larger than 50kW in size, the eligibility date is the later of the date the application for ROO-FIT accreditation was received by Ofgem, or the date on which the installation was commissioned. Further information if available in Ofgem’s ‘Guidance for renewable installations’ available on www.ofgem.gov.uk/fits.
￼￼￼DECC Feed in Tariff Team | Thursday, July 19, 2012 | Page 24 of 25
What if I decide to sell my home which has a solar PV installation?
• Owners of homes with solar PV who wish to sell the property would need to check with their mortgage advisers and all other parties involved and put the necessary legal documents in place.
• The FITs scheme allows of the change of the recipient of the FITs payment in the event that the owner of the installation change.
• In the first instance, refer to your Statement of Terms and Conditions from your FITs Supplier for the process of notifying any changes with the installation.
Summary of solar PV tariffs
- evidence of property’s EPC rating will be required when applying for FITs. If no evidence showing the EPC has a band D or higher then the lower rate will apply.
- the export tariff for solar PV is currently 4.64p/kWh
- the tariff period (lifetime) is now 20 years
- the tariffs are to be reviewed every three months and will be revised according to deployment rates.
Summary of hydro, wind and microCHP tariffs
- evidence of property’s EPC rating is not required for these technologies
- the export rate is 4.64p/kWh
- the tariff period is 20 years for hydro and wind, 10 years for microCHP
- microhydro (<50kW) accreditation has to go through the ROO-FIT process not MCS
- the definition of ‘hydro generating station’ has been extended to include small tidal projects
- a degression mechanism for wind and hydro technologies (microCHP not included) will become effective from 1 April 2014 (baseline 5% though will depend on previous deployment rates).
You can view Solar PV savings by using the calculator here