Feed-in-Tariff

 ”Feed-in-Tariffs are payments to ordinary energy users for the renewable electricity they generate” (fitariffs.co.uk)

The Feed-in-Tariff (FiT) scheme for solar PV gives a significant advantage to the long-term running costs of a property, building or business. It provides a sound investment whilst adding real value created through the revenue generation stream.

Get paid for ALL electricity generated, guaranteed for 20 years, RPI Linked and tax-free for domestic installations

By becoming a ‘microgenerator’ – creating renewable energy on a small scale – you are able to benefit in a number of ways.

There are three separate financial benefits:

The Generation Tariff

In April 2010 the Government introduced a piece of legislation stating that every electricity provider is obliged to pay anyone generating electricity from an accredited renewable source, for all the electricity they produce, irrespective of use. 

The rate paid for the electricity is set by the Government and varies depending on the potential output of the system. It is linked to the Retail Price Index (RPI) in order to rise with inflation annual, and payments are made for a 20 year period.

The Export Tariff

In addition to receiving payment for all of the electricity you generate, you can also sell unused electricity to your electricity provider. This is known as the ‘Export Tariff’ and is paid at a standard rate for all systems no matter their size. This rate is linked to the Energy Price Index (RPI) and therefore is also adjusted annually in line with inflation.

For systems smaller than 30kWp this payment is based on the assumption that 50% of the generated electricity is used onsite and the other 50% is exported into the national grid. For the 50% assumed to be exported, your electricity provider will pay 4.64p per kWh. In reality you may use more or less than half of the electricity generated, however you will always receive payment based on 50% of the total electricity generated.

If the system is greater than 30kWp your electricity provider will install an export meter. This will meter exactly how much electricity is exported to the national grid, and all payments are made on readings from this meter.

Table of Rates

Assumptions;

• FiT Generation Tariff rate of 10.62p/kWh indexed to the Retail Price Index (RPI)
• FiT Export Tariff rate of 4.64p/kWh indexed to RPI
• On-site electrical consumption; 80% of system generation
• Purchased electrical rate; 10p/kWh – indexed to the Consumer Price Index (CPI)
• RPI = 5%; CPI = 4%
• Indexed with RPI and CPI over 20 years

Visit the dedicated Feed-in-Tariff website for further details. www.fitariffs.co.uk