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 - untill March 2012), but once you join you will continue on the same tariff 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.
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.
Example of how the Feed-in Tariff works
Example;
A typical domestic solar electricity system, with an installation size of 2.2 kWp could earn around:
* £770 per year from the Generation Tariff
* £30 per year from the Export Tariff
* £120 per year reduction in current electricity bills.
This gives a total saving of around £920 per year.
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.
* After Solarnova has installed your Solar system, we will register you on the central FIT database and you will then receive a certificate confirming FIT compliance.
* You must then inform your chosen energy supplier that you are eligible to receive the FIT by providing the certificate. The supplier will then cross reference your installation with the central FIT database. Payments will then be made by your energy supplier at intervals to be decided between you and your supplier. You may be required to provide meter readings to the suppliers if requested.
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.)
Tariff levels, for technologies installed between 15th July 2009 and 31st March 2012 of most significance to householders
Technology Scale Tariff level (p/kWh) Tarifflifetime (years)
Solar electricity (PV) ≤4 kW (retro fit) 41.3 25
Solar electricity (PV) ≤4 kW (new build) 36.1 25
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.
Frequently Asked Questions
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:
* These arrangements will only apply until the finalising of specifications for smart meters;