Feed-In Tariff Information (Cash Back Scheme)
The Feed-In Tariff (FIT) is a government incentive that pays households and businesses to generate their own energy from ‘renewable’ sources, with the scheme making it financially viable for businesses and individuals to buy and install a renewable energy generator of which Solar Panels are one type. The FIT incentive is also payable to other qualifing generators i.e. wind/hydro.
Variations
The tariff levels are index-linked so they will track the retail price index (RPI).
How long are the tariffs paid for?
They last 25 years for solar PV systems .See the FIT payment table below.
Is the Tariff fixed for this whole period?
Yes – once you start at a given tariff, it is guaranteed for the full 25 year period plus any indexation as a result of the change in the RPI.
How does the index-linking work?
Each year the set level of the generation and export tariffs will be adjusted pro-rata to the retail price index. The Tariff adminstrators (OFGEM) will publish the updated tariff levels.
Do the tariff levels ever change?
For those who are already registered, tariffs will only change in accordance with the index-linking described above.
For systems installed in the future the FIT is reviewed regularly and changed in accordance with legislation.
Table of Feed-In Tariff levels
Generation Tariff (pence per kWh)1
| Energy Source | Scale | 01.03.2012- 31.03.12 | 2012-13 [***] | Duration (years) |
|---|---|---|---|---|
| Solar PV | ≤4 kW new2 | 21.0 | 21.0 | 25 years |
| Solar PV | ≤4 kW retrofit3 | 21.0 | 21.0 | 25 years |
| Solar PV | >4-10kW | 16.8 | 16.8 | 25 years |
| Solar PV | >10 – 50kW | 15.2 | 15.2 | 25 years |
| Solar PV | >50kW – 250kW | 12.9 | 12.9 | 25 years |
| Solar PV | Standalone4/>250kW – 5MW | 8.5 | 8.5 | 25 years |
Notes:
1 These tariffs are index-linked for inflation
2 ‘New’ means where installed on a new building before first occupation
3 Retrofit’ means installed on a building which is already occupied
4 ‘Standalone’ means not attached to a building and not wired to provide electricity to an occupied building
[***] – With effect from 1-4-12 it is proposed that the full FIT will only be payable to properties with an Energy Efficiency Rating of ‘D’ or above. Otherwise the stand alone rate will be paid.
- These rates will be reviewed in July 2012; The new scale is intended be flexible and designed to react to the level of installations. The rates below are based on the installed capacity in March and April reaching: >200MW (Option A), 150-200MW (Option B) or <150MW (Option C):
| Energy Source | Band(kW) | A | B | C |
|---|---|---|---|---|
| Solar PV | ≤4 kW retrofit3 | 13.6 | 15.7 | 16.5 |
| Solar PV | >4-10kW | 10.9 | 12.6 | 13.2 |
| Solar PV | >10 – 50kW | 9.9 | 11.4 | 11.9 |
| Solar PV | >50kW – 150kW | 7.7 | 9.7 | 10.1 |
| Solar PV | >150kW – 250kW | 5.8 | 8.0 | 10.1 |
| Solar PV | Standalone4/>250kW – 5MW | 4.7 | 6.8 | 7.1 |
Once a system has been registered, the levels are guaranteed for the period of the tariff and index-linked. For systems registered in future years, some tariff levels will be adjusted to account for the anticipated reductions in system prices. It is expected with technology advances and increased demand prices will fall. For household customers producing energy mainly for their own use, the tariff income is also free from income tax, businesses producing energy should take advice on any tax implications from their tax advisors.
Also be aware that if you have multiple installations the rates may also be different. Please contact us for more details.
Can everyone receive the FIT?
Yes, so long as all the following rules have been met; the system must:
- have a capacity of less than 5 Mega Watts
- be one of 4 approved types, Solar PV, Anaerobic digestion, Wind, Hydro or Domestic scale micro CHP units
- have the appropriate accreditations (for all parts, materials and installer), either MCS (less than 50kW) or Roof-fit (systems over 50kW but less than 5MW)
- have an approved total generation meter (which would be supplied as part of our installation)
- be connected to the Electricity Network (if the system is >30kW, there must also be an export meter in place)
Additional Information on the official Feed-In Tariff website
This information is issued errors & omissions excepted.
