What are Feed-in Tariffs?

Feed-in Tariffs (FiTs) are part of the Clean Energy Cashback Scheme, a Government backed incentive scheme that pays people for creating their own "green" electricity.

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 (up from under 2% in 2009).

Available in Great Britain as of 1st April 2010, this scheme guarantees a minimum payment for all electricity generated by a solar PV system up to 5MW in size.

How does the Feed-in Tariff work?

The Tariffs give three financial benefits:

• A payment for all the electricity you produce, even if you use it yourself - the generation tariff
• Additional payment for any unused electricity you export into the grid - the export tariff
• A reduction on your standard electricity bill, from using energy you produce yourself

Generation Tariff

The generation tariff is the main payment of the Feed-In Tariff and is paid based on the total output of the renewable energy system - whether you feed it into the grid or use it yourself. Giving a fixed payment for each kWh of energy produced for 25 years, see the Tariff Rates page for current payment levels for Solar PV systems.

Export Tariff

The export tariff is an extra payment for every kilowatt-hour (kWh) of surplus electricity your system exports to the electricity grid, this is paid on top of the generation tariff.
When this payment is received you are effectively selling that electricity to the energy supply company, who can then deliver it to other customers.
This payment has been established to provide an incentive for energy efficiency as you will get paid extra for every kWh you don't use but export instead.

Who pays for the FiTs?

Although the FiTs are established in law, rather than coming from the government, the tariffs are actually paid by the energy suppliers who pass on the cost of the Feed-in Tariff scheme to all their electricity customers.

Duration and variations

The tariffs for Solar PV last for 25 years and are index linked so will track the retail price index. Once you start at a given tariff (see the tariff levels table) it is guaranteed for the full 25 years and is index linked.
Each year the set level of the generation and export tariffs will be adjusted pro-rata to the retail price index and the Tariff administrators will publish the updated tariff levels.

Applying for FiTs

To apply for the FiT incentive scheme, your installation must use MCS certificated equipment and be installed by an MCS accredited installer. In order to claim the incentive you must contact your FiT supplier (energy company) and provide them with your MCS installation details.

For large installations, over 50kW, generators need to apply for accreditation through the ROO-FiT process via Ofgem's Renewable & CHP Register. Upon completion, the generator should then contact a FiT supplier with their ROO-FiT details.

Energy suppliers play the main customer facing role in the FiT scheme,  responsible for taking the generator through the registration process, taking regular meter readings and making the payments to the generator. Not all energy suppliers are offering FiTs, and potential generators are advised to contact their supplier in the first instance to enquire about applying under the scheme. A list of participating suppliers can be found on the Ofgem website.