Feed In Tariffs
What are Feed In Tariffs?
Feed-In Tariffs are payments to ordinary energy users for the renewable electricity they generate. Under the feed in tariff scheme energy suppliers have to make regular payments to householders and communities who generate their own electricity from renewable or low carbon sources such as solar P.V. panels.
Why were Feed In Tariffs set up?
The tariffs have been introduced by the Government to help increase the level of renewable energy in the UK towards our legally binding target of 15% of total energy from renewables by 2020.
Who is eligible to receive the tariff?
The tariffs are open to everyone who is producing their own renewable energy, from private homeowners to businesses and schools. The only caveat is that your system must be installed by a registered MCS approved installer to qualify for the tariff.
How do the tariffs work?
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 (except for the first 2 years), but once you join, solar electricity (PV) installations will continue on the same tariff for 25 years.
- 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.
- 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.
What are the rates I’ll receive?
| System Size | Generation Rate | Export Rate |
|---|---|---|
| Under 4kW (retrofit) | 43.3p | 3p |
| Under 4kW (new build) | 37.8p | 3p |
| 4kW – 10kW | 37.8p | 3p |
| 10 – 100kW | 32.9p | 3p |
| 100kW – 5mW | 30.7p | 3p |
You can find more detailed information about current feed in tariff rates and full information on how to claim them at the energy saving trust website.
> Typical installation costs and power outputs.